Chapter 5:Chapter 5: General Ledger, Inventory, General Ledger, Inventory,

and Internal Controland Internal Control

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

General Ledger and InventoryGeneral Ledger and InventoryIn Chapter 5, you learn about the General Ledger chart of In Chapter 5, you learn about the General Ledger chart of accounts. accounts. Sage 50 includes over 75 sample charts of accounts. You can Sage 50 includes over 75 sample charts of accounts. You can set up your own chart of accounts, copy a chart of accounts set up your own chart of accounts, copy a chart of accounts used by another company, or use one of the samples.used by another company, or use one of the samples.Chapter 5 also shows you how to use Sage 50’s inventory Chapter 5 also shows you how to use Sage 50’s inventory system. Sage 50 lets you track inventory items both at the system. Sage 50 lets you track inventory items both at the purchasing and sales level.purchasing and sales level.Sage 50 keeps track of cost of goods sold, stock levels, sales Sage 50 keeps track of cost of goods sold, stock levels, sales prices, and vendors.prices, and vendors.

Another Sage 50 feature is user security. In Chapter 5, Security and Internal Control section, you learn about how Sage 50 keeps company data secure.

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Sage 50 TipSage 50 Tip

Sage 50 uses a perpetual inventory system. Sage 50 uses a perpetual inventory system. Chapter 5 includes two tables that show how Chapter 5 includes two tables that show how Sage 50 Inventory and Purchases and Sage 50 Inventory and Purchases and Inventory and Sales are journalized.Inventory and Sales are journalized.

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Backing Up Chapter 5Backing Up Chapter 5

Backup File (.ptb)Backup File (.ptb)

Excel (.xlsx) and Adobe (.pdf)Excel (.xlsx) and Adobe (.pdf)

KBKB Page Nos.Page Nos.

Chapter 5.ptbChapter 5.ptb 3,523 KB3,523 KB 186186

Exercise 5-2.ptbExercise 5-2.ptb 3,605 KB3,605 KB 188188

Exercise 5-2_General Ledger Exercise 5-2_General Ledger Trial Balance.xlsxTrial Balance.xlsx

15 KB15 KB 188188

Exercise 5-2_General Ledger Exercise 5-2_General Ledger Trial Balance.pdfTrial Balance.pdf

61 KB61 KB 188188

In Chapter 5, you make two backups, export the General Ledger Trial Balance to Excel, and save one PDF file.

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Sage 50 Help: Chart of Accounts Sage 50 Help: Chart of Accounts

Toolbar

Navigation pane

Topic pane

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Chapter 5:Chapter 5: Glossary of Terms Glossary of Terms

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Perpetual inventoryPerpetual inventory

In a perpetual inventory system, an up-to-In a perpetual inventory system, an up-to-date record of inventory is maintained. The date record of inventory is maintained. The inventory account is revised each time a inventory account is revised each time a purchase or sale is made.purchase or sale is made.

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Chart of accountsChart of accountsA list of all the A list of all the accounts used by a accounts used by a company, showing company, showing the identifying the identifying number assigned to number assigned to each account.each account.

Sage 50 has over 75 Sage 50 has over 75 sample charts of sample charts of accounts.accounts.

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HTMLHTMLHTML is an acronym for Hypertext Markup HTML is an acronym for Hypertext Markup Language. Sage 50’s Help windows display in HTML Language. Sage 50’s Help windows display in HTML format.format.

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Inventory SystemInventory SystemSage 50’s Inventory & Services Navigation Center shows the inventory Sage 50’s Inventory & Services Navigation Center shows the inventory system, which includes information and access points related to the system, which includes information and access points related to the company’s inventory items. The Inventory & Services selection shows Sage company’s inventory items. The Inventory & Services selection shows Sage 50’s inventory module or inventory system. 50’s inventory module or inventory system.

Workflow diagram

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Internal ControlInternal Control

Internal control is an integrated system of people, Internal control is an integrated system of people, processes, and procedures that minimize or eliminate processes, and procedures that minimize or eliminate business risks, protect assets, facilitate reliable business risks, protect assets, facilitate reliable accounting, and promote efficient operations.accounting, and promote efficient operations.

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Audit TrailAudit TrailIf changes are made to company records, Sage 50’s audit trail provides If changes are made to company records, Sage 50’s audit trail provides documentation. An audit trail records all entries and changes related to the documentation. An audit trail records all entries and changes related to the company’s data, including actions by specific users. company’s data, including actions by specific users.

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Online Learning CenterOnline Learning Center Go online to Go online to www.mhhe.com/yacht2015 for additional for additional

resources. Link to resources. Link to Student EditionStudent Edition, select Chapter 5., select Chapter 5.

o Interactive TestingInteractive Testing Appendix C: Review of Acctg.Appendix C: Review of Acctg.o Glossary of TermsGlossary of Terms Appendix D: Glossary of Terms Appendix D: Glossary of Terms o Feature QuizzesFeature Quizzeso Narrated PowerPointsNarrated PowerPointso Assessment RubricsAssessment Rubricso Going to the NetGoing to the Neto QA Templates QA Templates

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Going to the NetGoing to the NetAccess this website Access this website

http://www.nolo.com/legal-encyclopedia/bookkeeping-accounting-basics-29653.html. Read the Bookkeeping and Accounting Basics article.. Read the Bookkeeping and Accounting Basics article.

1.1. List the three steps for keeping your small List the three steps for keeping your small business accounting records. business accounting records.

2.2. From this website, link to another area.From this website, link to another area.

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Analysis QuestionsAnalysis Questions

1.1. List four ways that Sage 50 includes user List four ways that Sage 50 includes user security and internal control.security and internal control.

2.2. How is the audit trail associated with user How is the audit trail associated with user security? Provide an example.security? Provide an example.

3.3. How does user security address the How does user security address the purpose of internal control?purpose of internal control?

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Assessment RubricAssessment Rubric

Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

3/18 Transfer $1,200 from the Regular Checking Account to the Payroll Checking Account.

3/19 Purchased two (2) Oriole Feeders from DeJulia Wholesale Suppliers, Invoice No. 94977, $14.

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