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Exercise 3.1

Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. _____________ is a financial organizational tool that provides a complete listing of every account in an accounting system.

2. An _____________ is a unique record for each type of asset, liability, equity, revenue and expense.

3. The _____________ accounts reflect the monitory value of the company - stock, assets, debt, etc. These accounts are carried over from one fiscal year to the next.

4. _____________ accounts has to be cleared at the end of each fiscal year through Period End Closing process.

5. Chart of Accounts of SAP Business One can be viewed and managed through the _____________ module.

Exercise 4.1

What are the purpose of subsidiary ledgers?

Exercise 5.1

Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. _____________ is a record of financial transactions in order by date. It is often defined as the book of original entry.

2. _____________ is a special or specialized journal is used to record sales of merchandise to customers.

3. _____________ is a special journal used to record money received.

4. _____________ is a record of all acquisitions made on credit during a period

5. _____________ is a record kept by accountants to record all financial expenditures made by a company.

Exercise 5.2

Record the following transactions using the Manual Journal Entry:

On January 20, 2020, the company received billings for the following utilities:

Dr. Light Expense P 6,750

Dr. Water Expense P 4,400

Cr. Accrued Expense Payable P 11,150

On January 25, 2020, billings received were paid for cash.

Dr. Accrued Expense Payable P 11,150

Cr. Cash on Hand P 11,150

Exercise 5.3

Record the following transactions using the Manual Journal Entry:

On February 10, 20XX, the owner of the company had an additional cash investment of P 500,000, deposited on the company's BDO Bank Account.

Dr. Cash in Bank - BDO P 500,000

Cr. Aquino, Capital P 500,000

Exercise 5.4

Record the following transactions using the Manual Journal Entry:

On March 15, 20XX, the owner withdrawn some of his cash investment to pay for his personal expenses amounting to P 25,000. The Disbursement Officer withdrew the amount from the company's BDO account.

Dr. Aquino, Drawing P 25,000

Cr. Cash in Bank - BDO P 200,000

Exercise 5.5

Record the following transactions using the Manual Journal Entry:

On March 30, 20XX, the company recorded a Salary Expense worth of P 100,000, paid for through the company's BDO Bank Account:

Dr. Salaries and Wages P 100,000

Cr. Cash in Bank, BDO P 100,000

Exercise 5.6

Create the following entries in journal entry through the journal vouchers.

Date Transaction Amount

April 01, 20XX Sansa Aquino invested office equipment for the business Php 850,000

April 02, 20XX The owner invested additional cash through a bank deposit in Metrobank Php 72,000

April 03, 20XX Paid transportation for business related travels Php 1,750

Submit the screenshot of the journal voucher created and the transaction journal report from April 01, 20XX - April 03, 20XX.

Exercise 5.7

On April 10, 20XX, the company received the billing from PLDT worth Php 11,200 (tax inclusive). It is to be recorded as Communication Expense on the A/P invoice.

Screenshot the journal entry created from the A/P invoice.

Exercise 5.8

On April 11, 20XX, the company received the billing from Philhealth, worth P 3000, for the employees' recent salary.

Screenshot the journal entry created from the A/P invoice.

Exercise 5.9

On April 13, 20XX, the company received the billing from SSS, worth P 5000, for the employees' recent salary.

Screenshot the journal entry created from the A/P invoice.

Exercise 5.10

On April 15, 20XX, the invoice from PLDT was paid for by cash (based on Exercise 5.6).

Screenshot the journal entry created from the outgoing payment.

Exercise 5.11

On April 16, 20XX, the invoice from Philhealth was paid for by cash (based on Exercise 5.7).

Screenshot the journal entry created from the outgoing payment.

Exercise 5.12

On April 16, 20XX, the invoice from SSS was paid for by cash (based on Exercise 5.8).

Screenshot the journal entry created from the outgoing payment.

Exercise 5.13

On May 2, 20XX, the company billed Mariah Carey for the services it rendered worth P 50,000 (tax exclusive, tax will automatically be computed by the system). It is to be recorded as Sales and Service Income in the A/R invoice.

Screenshot the journal entry created from the A/R invoice.

Exercise 5.14

On May 5, 20XX, the company rendered service to a walk-in customer amounted to P 15,000 (tax not yet included). The customer immediately paid cash.

Screenshot the journal entry created from the A/R invoice + Payment.

Exercise 5.15

On May 9, 20XX, the company rendered service to Elvis Presley amounted to P 80,000 (tax not yet included). It is to be recorded as Sales and Service Income in the A/R invoice.

Screenshot the journal entry created from the A/R invoice.

Exercise 5.16

On May 9, 20XX, Mariah Carey paid her invoice via Bank Transfer to the company's Metrobank account with reference number RQL0965YT.

Screenshot the journal entry created from the Incoming Payment.

Exercise 5.17

On May 10, 20XX, Elvis Presley paid his invoice by cash.

Screenshot the journal entry created from the Incoming Payment.

Exercise 5.18

Generate the General Ledger as of the date of the latest transaction.

Exercise 5.19

Assuming the company uses Asset Method in recording prepayments. Perform the adjusting entries based on the transactions below:

On June 1, 20XX, the company paid in advance, 1 year worth of rent, for a total of P 120,000 (P 10,000 per month), from its Cash in Bank - BDO account.

Dr. Prepaid RentP 120,000

Cr. Cash in Bank - BDOP 120,000

(Adjusting Entry) On December 31, 20XX, recognize the rent expense incurred.

Dr. Rent ExpenseP 70,000

Cr. Prepaid RentP 70,000

Exercise 5.20

Assuming the company uses Expense Method. Perform the adjusting entries based on the transactions below:

On July 15, 20XX, the company bought Office Supplies worth Php 35,000.

Dr. Supplies Expense P 35,000

Cr. Cash on HandP 35,000

(Adjusting Entry) On December 31, 20XX, office supplies worth Php 15,000 were used and expensed.

Dr. Office SuppliesP 20,000

Cr. Supplies ExpenseP 20,000

Exercise 5.21

Perform the adjusting entries based on the transactions below:

On August 1, 20XX, the company bought Office Machinery worth Php 20,000.

Dr. Office Machinery P 20,000

Cr. Cash on HandP 20,000

(Adjusting Entry) On December 31, 20XX, Office Machinery was computed to have a depreciated by P 2,500.

Dr. Depreciation Expense - MachineryP 2,500

Cr. Accumulated Depreciation - MachineryP 2,500

Exercise 5.22

Generate the unadjusted Trial Balance as of the end of the year.

Exercise 5.23

Generate the adjusted Trial Balance as of the end of the year.

Exercise 5.24

Generate the Balance Sheet as of the end of the year.

Exercise 5.25

Generate the Income Statement for the year ended 20XX.

Exercise 5.26

Perform Period End Closing for the year 20XX.

Screenshot the closing entries generated in the Transaction Journal Report.