Chapter 10: Maintaining Accounting Records for Service Businesses Chapter 10: Maintaining Accounting Records for Service Businesses Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Service Business Records In Chapter 10, you continue the work started in Chapter 9. You complete the computer accounting cycle for the month of October using the transaction register and bank statement as source documents. Source documents are used to show written evidence of a business transaction. For David Walsh Designer, the source documents used are his transaction register and bank statement. The transaction register shows Mr. Walsh’s checking account activity. 2 of 15

Sage 50 Tips Sage 50 Tips Chapters 9, 10 and 11 work together. The David Walsh Designer service business set up in Chapter 9 is continued in Chapters 10 and 11. The company set up in Exercise 9-1, Crafts by your first and last name, is continued in Exercises 9-2, 10-1, 10-2, 11-1, and of 15

Backing Up Chapter 10 Backup Name (.ptb) Excel (.xlsx)KilobytesPage Nos. Chapter 10 Transaction Register October.ptb971 KB Chapter 10 October.ptb987 KB325 Chapter 10_October Trial Balance and Financial Statements.xlsx 21 KB Chapter 10_October Trial Balance.pdf5 KB327 Chapter 10_October Balance Sheet.pdf5 KB327 Chapter 10_October Income Statement.pdf5 KB327 Exercise 10-1.ptb935 KB329 Exercise 10-2.ptb953 KB331  In the textbook, detailed steps are shown for backing up to a USB drive. The chart below, and on textbook pages , shows the size of the backup files, Excel files, and PDF files. You may also backup to a hard drive location. 4 of 15

Backing Up Chapter 10 (concluded) Backup Name (.ptb) Excel (.xlsx)KilobytesPage Nos. Exercise 10-2_October Trial Balance and Financial Statements.xlsx 20 KB331 Exercise 10-2_October Trial Balance.pdf50 KB331 Exercise 10-2_October Balance sheet.pdf5 KB331 Exercise 10-2_October Income Statement.pdf5 KB331 5 of 15

Maintain Global Options, steps 1-3, p. 304 From the menu bar, click on Options, Global. Make sure the box next to Recalculate cash balance automatically in Receipts, Payments, and Payroll Entry has a check mark next to it. When you use Receipts and Write Checks, make sure that the Cash account balance agrees with the textbook’s transaction register balance. Refer to the transaction register on pages The Write Checks window shows the October 2 Cash account balance. 6 of 15

Editing Journal Entries, p. 320 Click on Tasks, then Receipts. Click on the icon. Double-click the deposit you want to edit. Make any necessary changes, then click on Save to post. Editing Write Checks works similarly. 7 of 15

Glossary of Terms Chapter 10 8 of 15

Source Documents, p. 301 Source documents are used to show written evidence of a business transaction. For David Walsh Designer, the source documents used are his transaction register and bank statement. 9 of 15

Transaction Register, p. 301 The transaction register shows checking account activity. 10 of 15

Bank reconciliation, p. 316 Sage 50’s Account Reconciliation feature allows you to adjust Mr. Walsh’s bank statement. Bank reconciliation is the process of bringing the balance of the bank statement and the balance of the cash account into agreement. 11 of 15

Online Learning Center  Go online to for additional resources. Link to Student Edition, select Chapter 10. o Interactive Testing o Glossary of Terms o Feature Quizzes o Videos: Demonstration of recording checks and deposits. o Narrated PowerPoints o Assessment Rubric o Going to the Net o QA Templates  The OLC also includes Appendixes A, B, C, and D. 12 of 15

Going to the Net Access the Sage Quantum website at US/products/quantum/features?WT.mc_id=50US_QTM_Features1 Answer the following. 1. How does Sage Quantum help you manage your business with confidence? 2. Describe two industry-specific functions. 13 of 15

Analysis Question What is account reconciliation? 14 of 15

Assessment Rubric TaskDateNavigation CenterWindow Journal Dr. and Cr. ATM (Exercise 10-1) 10/2/13 Deposit (Exercise 10-1) 10/8/13 15 of 15