1. Chapter 11: Completing Quarterly Activities & Closing the Fiscal Year
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Completing Quarterly Activities and Closing the Fiscal Year
Chapters 9, 10 and 11 work together. In Chapter 11, you continue recording financial information for David Walsh Designer. You complete the Computer Accounting Cycle for November and December. Mr. Walsh’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.
2 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

3. SCA’s Computer Accounting Cycle, p. 3341.
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.
3 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

4. Sage 50 Tips
You must complete Chapters 9 and 10 before starting Chapter 11.
To check that you have completed Chapter 10, display David Walsh Designer’s general ledger trial balance. Compare it to the one shown on page 335. This is the trial balance at the end of October.
If any of the account balances are incorrect on the general ledger trial balance, follow the steps for Editing Journal Entries on page 320. Then, reprint the trial balance.
4 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

5. Sage 50 Tips (concluded)
If you do not get the correct year-to-date amounts on the Income Statement (page 361) and Statement of Cash Flow (page 363), you probably set your chart of accounts beginning balances in Chapter 9 incorrectly (refer to steps 1-8, pages , Entering Chart of Accounts Beginning Balances).
The Select Period window, From 9/1/13 through 9/30/13, is shown on page 282 below step 3.
To check that your beginning balances were set up correctly, display the September 30, 2013 balance sheet (refer to pages ).
5 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

6. Excel (.xlsx) and Adobe (.pdf)
Backing Up Chapter 11
The chart below shows the size of the backups made in Chapter 11. Refer to textbook pp for sizes of backups (.ptb), Excel files (.xlsx), and Adobe (.pdf) files in Part 2 - Chapters 9, 10, 11 and Project 1.
Sage 50 Backup (.ptb)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes
Pages
Chapter 11 November.ptb
1,002 KB
346
Chapter 11 December UTB.ptb
1,013
353
Chapter 11 December.ptb
1,009 KB
364
Chapter 11_Adjusted Trial Balance and Financial Statements.xlsx
29 KB
Chapter 11_Adjusted Trial Balance.pdf
50 KB
365
Chapter 11_December Balance Sheet.pdf
5 KB
Chapter 11_December Income Statement.pdf
6 KB
Chapter 11_December Statement of Cash Flow.pdf
6 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

7. Backing Up Chapter 11 (continued)
Sage 50 Backup (.ptb)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes
Pages
Chapter 11_December Statement of Retained Earnings.pdf
4 KB
365
Chapter 11 EOY.ptb
1,020 KB
372
Chapter 11_Postclosing Trial Balance.xlsx
12 KB
Chapter 11_Postclosing Trial Balance.pdf
49 KB
Asset depreciation.xlsx (Going to the Net)
14 KB
OLC
Exercise 11-1.ptb
973 KB
376
Exercise 11-2_Unadjusted Trial Balance.ptb
995 KB
378
Exercise 11-2 Financial Statements.ptb
994 KB
379
Exercise 11-2_Adjusted Trial Balance and Financial Statements.xlsx
29 KB
Exercise 11-2_Adjusted Trial Balance.pdf
51 KB
Exercise 11-2_Balance Sheet.pdf
5 KB
7 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

8. Backing Up Chapter 11 (concluded)
Sage 50 Backup (.ptb)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes
Pages
Exercise 11-2_Income Statement.pdf
6 KB
379
Exercise 11-2_Statement of Cash Flow.pdf
5 KB
Exercise 11-2_Statement of Retained Earnings.pdf
4 KB
Exercise 11-2 End of Year.ptb
1,005 KB
Exercise 11-2_Postclosing Trial Balance.xlsx
12 KB
Exercise 11-2_Postclosing Trial Balance.pdf
50 KB
8 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

9. Change accounting periods, pp. 336-337
Click on Tasks, then System. From the System menu, select Change Accounting Period. Select 11-Nov 01, 2013 to Nov 30, 2013.
The Change Accounting Period window is shown on p. 336.
Click on <OK>. Click on <No> at the window prompt.
The toolbar shows .
9 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

10. Data File Statistics, pp. 346-347
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 Data File Statistics window is shown on page 347.
Click OK to close the Data File Statistics window.
The shortened company name that Sage 50 assigns is made from the first three letters in the first word, the first three letters in the second word, and two letters from the third word.
10 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

11. Glossary of Terms Chapter 11
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

12. General Ledger System, pp. 333-334
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.
12 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

13. Unearned revenue, p. 356
Unearned revenue is a liability account used to report advance collections from customers or clients.
13 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

14. Online Learning Center
Go online to for additional resources. Link to Student Edition, select Chapter 11.
Interactive Testing
Glossary of Terms
Feature Quizzes
Narrated PowerPoints
Assessment Rubric
Going to the Net
QA Templates
Appendixes A, B, C, and D are also on the OLC.
14 of 18

15. Going to the Net Start Excel (2003 or later). Click ; select New.
To use an Excel Asset Depreciation Schedule template, follow these steps.
Start Excel (2003 or later).
Click ; select New.
In the Search box, type Asset Depreciation Schedule.
Press <Enter>. Double-click on the displayed depreciation schedule and the download begins.
Complete the fields shown on the next slide and answer question number 3.
15 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

16. Going to the Net (concluded)
Complete the following fields. Press <Enter> to move between fields.
Date: /1/2006
Initial cost:
Salvage value: Useful life (years)
Click on Asset Depreciation. Type Furniture to replace it.
Save. The suggested file name is Asset depreciation schedule1.xlsx.
What depreciation methods are shown?
Close Excel.
16 of 18
Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

17. Analysis Questions
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.)
Does the balance in retained earnings differ on the adjusted trial balance and the postclosing trial balance?
How does the postclosing trial balance differ from the adjusted trial balance?
17 of 18

18. Assessment Rubric Task Date Navigation Center Window Ending GL Balance
December bank reconciliation
David Walsh Designer
18 of 18