2. Chapter 11: Completing Quarterly Activities and Closing the Fiscal Year Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

3. Completing Quarterly Activities and Closing the Fiscal Year Chapters 9, 10 and 11 work together. In Chapter 11, you continue recording financial information for Dennis Westin Designer. You complete the Computer Accounting Cycle for November and December. Mr. Westin’s transaction registers and bank statements are used as source documents. At the end of December, which is also the end of the fourth quarter, you complete adjusting entries, print financial statements, and close the fiscal year. 11-2

4. SCA’s Computer Accounting Cycle SCA's Computer Accounting Cycle 1.Change accounting periods. 2.Journalize entries. 3.Post entries to the General Ledger. 4.Account Reconciliation. 5.Print the General Ledger Trial Balance (unadjusted). 6.Journalize and post adjusting entries. 7.Print the General Ledger Trial Balance (adjusted). 8.Print the financial statements: Balance Sheet, Income Statement, Statement of Cash Flow, and Statement of Retained Earnings. 9.Close the fiscal year. 10.Interpret accounting information. 11-3

5. Sage 50 Tips Sage 50 Tips You must complete Chapters 9 and 10 before starting Chapter 11. To check that you have completed Chapter 10, display Dennis Westin Designer’s general ledger trial balance. Compare it to the October 31 general ledger trial balance shown at the beginning of Chapter 11. If any of the account balances are incorrect on the general ledger trial balance, follow the steps for Editing Journal Entries in Chapter 10. Then, reprint the trial balance. 11-4

6. Sage 50 Tips (concluded) Sage 50 Tips (concluded) If you do not get the correct year-to-date amounts on the Income Statement and Statement of Cash Flow, you probably set your chart of accounts beginning balances in Chapter 9 incorrectly, refer to Entering Chart of Accounts Beginning Balances. In Chapter 9, the Select Period window, From 9/1/15 through 9/30/15, is shown. To check that your beginning balances were set up correctly, display the September 30, 2015 balance sheet. 11-5

7. Backing Up Chapter 11 Sage 50 Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Chapter 11 November.ptb1,012KB350 Chapter 11 December UTB.ptb1,013 KB357 Chapter 11 December.ptb1,023 KB368 Chapter 11_Adjusted Trial Balance and Financial Statements.xlsx 29 KB368-369 Chapter 11_Adjusted Trial Balance.pdf7 KB369 Chapter 11_December Balance Sheet.pdf5 KB369 Chapter 11_December Income Statement.pdf5 KB369 Chapter 11_December Statement of Cash Flow.pdf5 KB369. The chart below shows the size of the backups made and files saved in Chapter 11. 11-6

8. Backing Up Chapter 11 (continued) Sage 50 Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Chapter 11_December Statement of Retained Earnings.pdf4 KB369 Chapter 11 EOY.ptb1,030376 Chapter 11_Postclosing Trial Balance.xlsx12 KB376 Chapter 11_Postclosing Trial Balance.pdf46 KB376 Asset depreciation.xlsx (Going to the Net)14 KBOLC Exercise 11-1.ptb964 KB380 Exercise 11-2_Unadjusted Trial Balance.ptb974 KB383 Exercise 11-2 Financial Statements.ptb974 KB383 Exercise 11-2_Adjusted Trial Balance and Financial Statements.xlsx 28 KB383 Exercise 11-2_Adjusted Trial Balance.pdf49 KB383 Exercise 11-2_Balance Sheet.pdf5 KB383 11-7

9. Backing Up Chapter 11 (concluded) Sage 50 Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Exercise 11-2_Income Statement.pdf5 KB383 Exercise 11-2_Statement of Cash Flow.pdf5 KB383 Exercise 11-2_Statement of Retained Earnings.pdf4 KB383 Exercise 11-2 End of Year.ptb983 KB384 Exercise 11-2_Postclosing Trial Balance.xlsx11 KB384 Exercise 11-2_Postclosing Trial Balance.pdf48 KB384 11-8

10. Change accounting periods Click on Tasks, then System. From the System menu, select Change Accounting Period. Select 11-Nov 01, 2015 to Nov 30, 2015. The toolbar shows 11-9

11. Data File Statistics From the menu bar, click Help, Customer Support and Service, then select File Statistics. The File Statistics window shows the shortened name for the company. If you used your first and last name Designer, your shortened company name will differ. The shortened company name that Sage 50 assigns is created from the first three letters in the first word, the first three letters in the second word, and two letters from the third word. 11-10

12. Glossary of Terms Chapter 11 11-11

13. General Ledger System The complete collection of accounts (chart of accounts) of a company, transactions associated with these accounts, and account balances for a specified period of time. The General Ledger System is the combination of all journal entries that are recorded and posted. The account balances are then shown on the financial statements. 11-12

14. Unearned revenue Unearned revenue is a liability account used to report advance collections from customers or clients. 11-13

15. Online Learning Center  Go online to www.mhhe.com/yacht2015 for additional resources. Link to Student Edition, select Chapter 11.www.mhhe.com/yacht2015 o Interactive Testing o Glossary of Terms o Feature Quizzes o Narrated PowerPoints o Assessment Rubric o Going to the Net o QA Templates o Appendixes C and D are also on the OLC. 11-14

16. Going to the Net To use an Excel Asset Depreciation Schedule template, follow these steps. 1. Start Excel (2003 or later). 2. Click ; select New. 3. In the Search box, type Asset Depreciation Schedule. 4. Press. Double-click on the displayed depreciation schedule and the download begins. 5. Complete the fields shown on the next slide and answer question number 3. 11-15

17. Going to the Net (concluded) Complete the following fields. Press to move between fields. Date:1/1/2010 Initial cost:7000 Salvage value:0 Useful life (years)7 1. Click on Asset Depreciation. Type Furniture to replace it. 2. Save. The suggested file name is Asset depreciation schedule.xlsx. 3. What depreciation methods are shown? 4. Close Excel. 11-16

18. Analysis Questions 1. When using Sage 50, why is it important to change accounting periods? (Hint: Do a search on Sage 50’s Help window for Change Accounting Period.) 2. Does the balance in retained earnings differ on the adjusted trial balance and the postclosing trial balance? 3. How does the postclosing trial balance differ from the adjusted trial balance? 11-17

19. Assessment Rubric TaskDate Navigation Center Task Window Ending GL Balance December bank reconciliation Dennis Westin Designer 11-18