Using Sage 50 Accounting 2024, 1st
Canadian Edition by Mary Purbhoo
Complete Chapter Solutions Manual
are included (Ch 1 to 19)
** Immediate Download
** Swift Response
** All Chapters included
** Extra Files included
,Table of Contents are given below
1.Getting Started: Introduction to Sage 50
2.GST, HST and PST
3.Binh's Bin: General Journal
4.Love It Again: General Ledger Setup
5.Groen Fields: Accounts Payable
6.Phoebe's Photo Studio: Accounts Receivable
7.Air Care Services: Receivables & Payables Setup
8.Helena's Academy: Payroll Journal
9.Northern Lights: Payroll Ledger Setup
10.Kara's Kitchens: Inventory
11.Andersson Chiropractic Clinic: Orders, Quotes & Deposits
12.Maple Leaf Rags: Currencies, Remittances & Accountant's Copy
13.Shady Corners: Allocations & Electronic Payments
14.Sound, Inc.: Budgeting
15.Tesses Tresses: Reconciliation & Deposits
16.VeloCity: Payroll & Inventory Setup
17.Stratford Country Inn: Comprehensive Practice
18.Ryder's Routes: Time & Billing
19.Able & Associates: Departmental Accounting
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure that
all chapters are included in this document. (Complete Chapters included Ch19-1)
CHAPTER 19: Able & Associates Inc.
Review Questions
1. How is adding departments different from adding divisions?
Both departments and divisions must be created before amounts can be assigned to them. You can assign
departments to specific accounts, suppliers and customers by selecting the department in the ledger record.
General Ledger accounts may be used by more than one department. If a supplier or customer is assigned to
a department, only one department can be selected. Selecting departments in journal entries is like selecting
different accounts. Divisions or projects are not linked to ledger records. They are assigned in the journals by
indicating the breakdown or allocation for each division.
2. What departmental information is added to journal entries when the supplier or customer has a designated
department?
If a customer or supplier has a designated department and departmental default revenue account, amounts
for all accounts in the journal entry for that customer or supplier are assigned to the designated department.
3. What departmental information can you add to journal entries? What can you not add?
If no department is assigned to a customer or supplier, you can select the departmental account instead of
the parent account in journal entries just as you would select any other account for the transaction. You can
do this only for accounts that are not entered automatically by the program – those that do not have an
account field. Inventory purchase linked asset accounts can also not be changed. These automatic linked
accounts will not have department information added. If an amount is divided among two or more
departments, you must be able to enter more than one account line in the journal. Thus you can select only
one department for the bank account for a payment or receipt. If the sale or purchase is to be split between
departments, the default linked accounts and the bank account amount must remain unassigned.
4. What restrictions apply when you use departments?
You cannot remove a department once the feature is activated and the department is used. You can choose
not to enter departmental details, however.
5. How are line discounts in a Sales Journal entry different from other customer discounts?
Line discounts reduce the revenue amount directly; no additional accounts are involved. They have the
same effect as editing the amount in the Sales Journal. The discount from customer terms is debited to a
unique contra-revenue account, so it will show up on Income Statements and can be monitored separately.
6. What must you do to set up line discounts for sales?
To set up line discounts, the feature must be activated (Home window, Setup menu, Settings – or Settings
icon – then Receivables, Discounts screen). The additional columns will be added to the Sales Journal – one
for the discount rate and one for the original price. The reduced unit price and amount are then calculated
automatically. You can also set up a line discount rate in the customer’s ledger record so that it appears
automatically when you select that customer in the Sales Journal.
7. How do journal entries change when you apply line discounts compared with not using line discounts?
Journal entries look like normal Sales Journal entries. No additional accounts are involved because revenue
is directly reduced. The journal itself has the extra columns so you can add the discount rate. Different rates
may be used for each line on the invoice, and the discount rate can be printed on the invoice so that the
customer can see the discount.
187
, 8. Why might the line discount columns not appear in the Sales Journal?
If the option to calculate line discounts is not selected in the Receivables Settings, the columns will not
appear in the journal.
9. If a customer always receives the same sales discount (at the time of the sale), how would you set up data files?
Set the customer up with an automatic line discount.
10. If the customer record is set up for automatic line discounts, but you do not want to apply them to a sales invoice,
how would you make the adjustment for this one-time change?
When processing the sales invoice cancel the line discount for this particular sale.
11. How do you enter departmental allocations for Paycheques Journal and Payroll Run Journal entries?
In the Payroll journals, choose Allocate Departments from the Paycheque menu to open the allocation
screen. Each account and amount is listed with a column for Department added. You can choose which ones
to assign to departments. Clicking the Department Detail button in the Department column will open the
allocation screen. Then you can enter the amount or percentage for the amount to divide it among
departments. You can apply the same percentage allocation to all accounts by selecting this option. You can
change the allocation for individual accounts after making this selection if you need to make changes.
12. If you do not want to apply departmental allocations for an account in a journal entry, what should you do?
You should not enter any departments for customer or vendor accounts. You can also remove all accounts
from the departments by indicating that the accounts are not used by the department. Or, you can select the
master or parent account in journal entries instead of the departmental account.
13. What information is available in departmental reports?
Departmental Reports show the amounts for each account for each department as well as unassigned
amounts. You can prepare a separate Balance Sheet, Trial Balance or Income Statement for each department.
These reports provide the same information for the department that they would for the entire company.
Journal reports include departmental accounts, if these were selected in the journal transactions. Vendor and
customer reports can be grouped by departments as well, so you can see the amounts owing to and owed by
each department.
14. Compare the Departmental Balance Sheet with the Balance Sheet that includes departments. How are they similar
and how are they different?
Departmental Balance Sheets have total column and provide a breakdown in separate columns with heading
such as Administration, Marketing, and Construction. The department names are specific to the company. A
non departmental Balance Sheet provides the total column but does not provide a departmental asset and
liability breakdown.
15. If you choose the department for a customer, but do not change the default Revenue account, what happens when you
enter a sales invoice or a receipt?
The Revenue from the sale invoice will be recorded in the general revenue account and not the account set up
for the specific department. The receipt will also be recorded in the general bank account and will not be
recorded in the specific department bank account. This oversite will affect the accuracy of the department
reports.
188
Canadian Edition by Mary Purbhoo
Complete Chapter Solutions Manual
are included (Ch 1 to 19)
** Immediate Download
** Swift Response
** All Chapters included
** Extra Files included
,Table of Contents are given below
1.Getting Started: Introduction to Sage 50
2.GST, HST and PST
3.Binh's Bin: General Journal
4.Love It Again: General Ledger Setup
5.Groen Fields: Accounts Payable
6.Phoebe's Photo Studio: Accounts Receivable
7.Air Care Services: Receivables & Payables Setup
8.Helena's Academy: Payroll Journal
9.Northern Lights: Payroll Ledger Setup
10.Kara's Kitchens: Inventory
11.Andersson Chiropractic Clinic: Orders, Quotes & Deposits
12.Maple Leaf Rags: Currencies, Remittances & Accountant's Copy
13.Shady Corners: Allocations & Electronic Payments
14.Sound, Inc.: Budgeting
15.Tesses Tresses: Reconciliation & Deposits
16.VeloCity: Payroll & Inventory Setup
17.Stratford Country Inn: Comprehensive Practice
18.Ryder's Routes: Time & Billing
19.Able & Associates: Departmental Accounting
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure that
all chapters are included in this document. (Complete Chapters included Ch19-1)
CHAPTER 19: Able & Associates Inc.
Review Questions
1. How is adding departments different from adding divisions?
Both departments and divisions must be created before amounts can be assigned to them. You can assign
departments to specific accounts, suppliers and customers by selecting the department in the ledger record.
General Ledger accounts may be used by more than one department. If a supplier or customer is assigned to
a department, only one department can be selected. Selecting departments in journal entries is like selecting
different accounts. Divisions or projects are not linked to ledger records. They are assigned in the journals by
indicating the breakdown or allocation for each division.
2. What departmental information is added to journal entries when the supplier or customer has a designated
department?
If a customer or supplier has a designated department and departmental default revenue account, amounts
for all accounts in the journal entry for that customer or supplier are assigned to the designated department.
3. What departmental information can you add to journal entries? What can you not add?
If no department is assigned to a customer or supplier, you can select the departmental account instead of
the parent account in journal entries just as you would select any other account for the transaction. You can
do this only for accounts that are not entered automatically by the program – those that do not have an
account field. Inventory purchase linked asset accounts can also not be changed. These automatic linked
accounts will not have department information added. If an amount is divided among two or more
departments, you must be able to enter more than one account line in the journal. Thus you can select only
one department for the bank account for a payment or receipt. If the sale or purchase is to be split between
departments, the default linked accounts and the bank account amount must remain unassigned.
4. What restrictions apply when you use departments?
You cannot remove a department once the feature is activated and the department is used. You can choose
not to enter departmental details, however.
5. How are line discounts in a Sales Journal entry different from other customer discounts?
Line discounts reduce the revenue amount directly; no additional accounts are involved. They have the
same effect as editing the amount in the Sales Journal. The discount from customer terms is debited to a
unique contra-revenue account, so it will show up on Income Statements and can be monitored separately.
6. What must you do to set up line discounts for sales?
To set up line discounts, the feature must be activated (Home window, Setup menu, Settings – or Settings
icon – then Receivables, Discounts screen). The additional columns will be added to the Sales Journal – one
for the discount rate and one for the original price. The reduced unit price and amount are then calculated
automatically. You can also set up a line discount rate in the customer’s ledger record so that it appears
automatically when you select that customer in the Sales Journal.
7. How do journal entries change when you apply line discounts compared with not using line discounts?
Journal entries look like normal Sales Journal entries. No additional accounts are involved because revenue
is directly reduced. The journal itself has the extra columns so you can add the discount rate. Different rates
may be used for each line on the invoice, and the discount rate can be printed on the invoice so that the
customer can see the discount.
187
, 8. Why might the line discount columns not appear in the Sales Journal?
If the option to calculate line discounts is not selected in the Receivables Settings, the columns will not
appear in the journal.
9. If a customer always receives the same sales discount (at the time of the sale), how would you set up data files?
Set the customer up with an automatic line discount.
10. If the customer record is set up for automatic line discounts, but you do not want to apply them to a sales invoice,
how would you make the adjustment for this one-time change?
When processing the sales invoice cancel the line discount for this particular sale.
11. How do you enter departmental allocations for Paycheques Journal and Payroll Run Journal entries?
In the Payroll journals, choose Allocate Departments from the Paycheque menu to open the allocation
screen. Each account and amount is listed with a column for Department added. You can choose which ones
to assign to departments. Clicking the Department Detail button in the Department column will open the
allocation screen. Then you can enter the amount or percentage for the amount to divide it among
departments. You can apply the same percentage allocation to all accounts by selecting this option. You can
change the allocation for individual accounts after making this selection if you need to make changes.
12. If you do not want to apply departmental allocations for an account in a journal entry, what should you do?
You should not enter any departments for customer or vendor accounts. You can also remove all accounts
from the departments by indicating that the accounts are not used by the department. Or, you can select the
master or parent account in journal entries instead of the departmental account.
13. What information is available in departmental reports?
Departmental Reports show the amounts for each account for each department as well as unassigned
amounts. You can prepare a separate Balance Sheet, Trial Balance or Income Statement for each department.
These reports provide the same information for the department that they would for the entire company.
Journal reports include departmental accounts, if these were selected in the journal transactions. Vendor and
customer reports can be grouped by departments as well, so you can see the amounts owing to and owed by
each department.
14. Compare the Departmental Balance Sheet with the Balance Sheet that includes departments. How are they similar
and how are they different?
Departmental Balance Sheets have total column and provide a breakdown in separate columns with heading
such as Administration, Marketing, and Construction. The department names are specific to the company. A
non departmental Balance Sheet provides the total column but does not provide a departmental asset and
liability breakdown.
15. If you choose the department for a customer, but do not change the default Revenue account, what happens when you
enter a sales invoice or a receipt?
The Revenue from the sale invoice will be recorded in the general revenue account and not the account set up
for the specific department. The receipt will also be recorded in the general bank account and will not be
recorded in the specific department bank account. This oversite will affect the accuracy of the department
reports.
188
