 In this presentation, we will enter common expense and cash payment transactions time to engage with Sage 50 cloud accounting. Here we are in our get great guitars file. We're currently in the customer and sales section. We're going to be making some payments now some common types of payments. So we're going to move on down to the vendors and purchase this section. A couple of ways we can make the payments. We can use the check document. So if we were to use a check document, we could say we're going to make a new check. Another way we can do this is to go on to the banking information down here to go down to banking. If you're making a lot of checks and you're just entering this into the system. Possibly if they're going to be electronic type of transactions and they don't have a check or if you're not printing the check and you're just entering the checks into the system. You can also go to the account register and then choose the account register and that might be the fastest way to enter those types of transactions into the system. Let's start off by going back up to the vendors and taking a look at that check form. Note that there's a couple of different places we can find this check form. One is in the vendor section. Another is in the banking section. So let's go to the check. I'm going to go and say we want a new check. So we'll go to the new check. Note that even though we're using basically a check form, we hit the dropdown over here. We can still use this data input form for any kind of basically cash going out. We can have a cash transaction, an MX transaction and so on and so forth. So if it's not a check, then you might want to say, okay, I'm just going to record the decrease with this same basically check form. And she's a different type of check payment for it. And then I'm going to go back up top. I'm going to say that we have the vendor ID. The first one is going to be safe insurance. So we're going to be paying our insurance bill here. I don't think we have safe insurance yet set up. So I'm going to say we want to add it. I'm going to say we're going to add the safe insurance. We're going to add a new vendor for it. The vendor ID then is just going to be safe insurance and company. And then I'm going to copy that and we'll put that in the name down below as well. So that's going to be it. I'm going to save this. So we'll save it up top. And I'm going to say if all we need an account for it. So I'm going to go down here and say the account. Now note whenever we go to this one, you would think it would be insurance expense right down here insurance expense. But when we write it to safe insurance, our debate or the question is whether or not we want to put it as an expense or as an asset. Now typically insurance is going to be the classic kind of example of something that's going to be a prepaid amount. Because whenever we pay for insurance, we pay for it before we get to the coverage. So therefore when we put it into insurance, generally we want to put it into prepaid insurance instead of insurance expense. And then at the end of the period at the end of the month or a year, then we would do the adjusting entry taking the amount out of the prepaid insurance for the amount that had then been consumed and expensing it at that time. So really I'm looking for an asset account up top to see if we have a prepaid account. So it would be like an other current asset. So we've got a lot of the payroll accounts income long term. I don't see one. So let's go ahead and add one. I'm going to say add a new account as we go. And we're going to be adding a new account. Now I'm going to take a look at the account numbers here. I'm looking at the account numbers and we want it to be somewhere in the other current assets type of accounts. So other current assets are going to be up top. So we have investments. That's 1290. So let's put this in like 1295. Let's say 1295, 1295. And then I'm going to say this is prepaid insurance. And then the type of account that we want is going to be an other asset account. So I'm going to go all the way down to the other current asset down below. And obviously no beginning balance. So we're going to say keep it there and save that. So we will save that. I will close that. And then I can put that prepaid insurance which was 1295 here. So there's going to be our prepaid insurance. That's going to be the default account every time we pay off this vendor. So then I'm going to save that. And then we can close out our vendor window. And then we can choose that vendor which is going to be the insurance. So we're going to say this is going to be our insurance vendor which I just set up all a safe insurance. That's the one. So we'll say that and then the check number or I'm just going to say it's going to be here. And then we're going to say the date. The date I'm going to say is 013020. And again, we can make it a check or we can make it some other type of format if it wasn't an actual check and still use this form. And then I could say this is some other like an electronic transfer maybe or something like that and still use a form such as this to record it. And then I'm going to say that the amount, we'll pick up the amount which is going to be 11,000. We're going to say that's for a year's worth of insurance. And that is going to be it. The other side is going to be going to the 1295 which is picking up now because it's picking that up given the fact that we listed that as the account to be going to for that particular vendor. So whenever we choose that vendor then it's going to be going to that default account. It's going to also be going over here to our cash account. Let's make sure it's the checking account. That's the one. So what's going to happen when we do this, it's going to decrease the checking account. The other side is going to go to a prepaid account not an expense, which will be that prepaid insurance. Let's save it and check it out. So we'll say save and then yes, please going to close this back out. We'll check out our information. Let's do that with the reports up top or go to the financial statements and let's go to the balance sheets. I'm going to open up the balance sheet. Make this for January. So we'll pick it up for January. And then within the balance sheet we have a payment in the checking account double clicking on that checking account. There's the 11,000 decrease there. If we double click on that, we get of course two hour form closing this back out closing this back out. The other side then going into prepaid insurance. There it is in prepaid insurance increasing the 11,000 there. So I'm going to close this back out and then we'll go back to our forms here. So we're going to do this again. So let's go back on over and we're going to say, all right, let's go back over here. We're going to make another one of these stage 50 is easy. I'm going to close this and let's make another check up top and we're going to say new check. This time we're going to write one to staples here. So staples is going to be a new vendor again. I don't think we have staples in here yet. It's an office supply type store. So I'm going to say new. So we'll say new so that we can add this vendor and it's going to be staples. So there we have it and then I'm going to say tab. I'll put that in the name here staples and then we need the account. So the account for staples is typically going to be like an office supplies type of thing. So I'm going to see if they have given us the office supplies or something such as that office supplies expense. That seems good. Let's pick that one. So that'll be like the default type of account that will be affected for this particular vendor when it is used. Let's go ahead and save that and then we'll close this back out. So we'll save and close that and then I'm going to stick staples. So we'll say staples. There we have it. And then we could pick a check check number or reference number and maybe this again is an e like an electronic transfer. We're going to make this 013020 and then let's put that into the cash. And then I'm just going to say that the amount is going to be 500. The amount of 500 the other side then going to the office supplies expense. So what's going to happen we're going to be decreasing the cash checking account goes down the other side goes to the office supplies expense. So then I'm going to save that. We're going to say yes please and then close that back out and then we'll go to the to the reports. So that means the checking account will be decreasing double clicking on the checking account. We've got the decrease of that 500 for staples closing this back out and minimizing this the other side is going to be in the reports. So let's go on back to the reports. Let's go to the income statement. So we'll go on down to the income statement going to pick this one for January. So we'll say January and I don't need the zero balances. So we will remove them and then say OK. And then now we have that expense the office supplies down here. So there's the office supplies expense now affecting the income statement. All right that was good times. Let's do it again. So we're going to go back on over we're going to go back on over we're going to write one for Edison which is our utility company. So we're going to select the right check drop down again. We're going to say it's a new check and we're going to be writing this to Edison's will make a new vendor here. We're going to say new and then we'll make a new vendor for Edison. So open this up and the vendors going to be Edison. So then I'm going to copy that and that'll be the name as well. So there we have that. I'm going to then say save that and OK. And then I'm going to close this or actually we need we need the other side of it. So the other side is typically going to go to utilities. So utilities over here. Let's see if we have one. So I'm going to select the drop down and see if we have something like utilities. There's the utilities expense. That's the one we're going to use. I'm going to save that now see if it's let's me save it this time and then close this back out. And then we're going to say this is going to Edison. So there it is. And then we could put a reference number and then I'm going to say the date 013020. Then I'm going to keep it there and we're going to say the amount is going to be 620. The other side then going to the cash account. So a cash accounts going down and then the the account for this vendor being the Edison which is going to be the utilities expense. So there we have that. So we're going to say all right that looks good. Let's save it and check it out. We will then save that close this out. Let's go back to our financials and take a look at them and we'll take a look at our balance sheet. Refresh if it does not do so automatically. Then we're going to go into the checking account within the checking account. We see Edison here on the 620 closing this back out. Then this back out the other side then on the income statement. So if we go back on over to the income statement. Refresh the report then and we see the other side in the utilities on the income statement. So there are those items. Next we're going to do this again for our telephone. So we're going to go back on over for the telephone and we'll go to the right checks. We're going to say we want a new check up top. We're going to say this is going to be Verizon which is going to be our phone company. So we're going to say new and pick up a new one. And this is going to be a new vendor, a new one, a new vendor. We'll say the vendor name is going to be Verizon and we're going to copy that and Verizon will be that. And then the other side is going to be the telephone. Let's see if we have a telephone or if they just have a utility. So let's see if we have a telephone expense we do. So there's the telephone expense that has been provided for us by Sage. So let's go ahead and then save that. And then close this out and then we'll pick up Verizon. So Verizon and tabbing through, tabbing through. And we're going to say this is something like that, 013020. Cash is going to be the other side. The amount of the payment is going to be for 360 we're going to say. The other side of the account then go into the telephone note that if you did need to split it, you can use this item so that if we had like more than two accounts involved, that's what that split does. So there we have that. This is going to be of course, decreasing cash. Other side going to the expense account that being the telephone expense. Let's go ahead and save this and check it out. So we're going to save that and say yes, and then close and then go to our reports. And let's take a look at the balance sheet report. We will refresh it. Go into the checking account. And then in then we have the Verizon and notice I put 3600 should be three should be 360. I'll see if I can adjust that. See if they let me adjust it here. So I'm going to say what if I try to adjust this check for 360 and then save this check. Let's see if we can then save it and then go OK. And then I'm going to close this back out. And then it does let us adjust the check there. So now the Verizon checks at the 360. I'm going to close this back out. And then the other side then go into the income statement going back to the income statement. And refresh if it doesn't do so already for you. I think mine is we have the telephone now at the 360. So here we have our income statement at this point in time. I will be printing the reports and kind of take a look at them as you reference them as you go through the practice problem. But that's going to be it for now. Let's get out of here.