This practice set is designed to assist students to understand and apply the accounting cycle on a step-by-step procedure with the use of Sage 50 Accounting for Windows. The procedure will include the start-up of a new service business, particularly a medical practice. This will expose students to set-up a new service company from ground zero. Chapters 1- 5 will give students exposure to journal entries and direct entries to cash receipts and cash payments journal. Exercise on adjusting entries will be applied. Reconciling the cash general ledger and the bank statement will be emphasized. Finally, closing the books of the service business for the year is illustrated. On Chapters 6-10, students will be exposed to the start-up of a merchandising company, particularly a drug store. This set-up of a new company will now allow students the use of the Chart of Accounts as recommended by Sage 50 for a retail or drug store company. Knowledge on how to set up the merchandise inventory account, including inventory costing, sales pricing, maintaining vendors and customers will be illustrated. Examples of invoices and receipts will be printed. Review of the adjusting entries will be applied; another example of a bank reconciliation will be put to use on a more complex feature. And finally closing the books for the merchandising company will conclude the illustrations on Chapter 10. The Final Exams will summarize the assessment of students learning outcomes with the use of Sage 50 accounting software.