BMSH2003

Recording Accounting Information using MS Excel

Review of the Accounting Process
Objectives:

At the end of the exercise, the students will be able to:

 Use MS Excel to record accounting information.

Equipment:
 A computer installed with MS Excel

Basic Principle/s:

Excel is an incredibly powerful tool for getting meaning out of vast amounts of data. But it also works well
for simple calculations and tracking almost any kind of information. The key to unlocking all that potential
is the grid of cells. Cells can contain numbers, text, or formulas. You put data in your cells and group them
in rows and columns that allow you to add up your data, sort and filter it, organize it in tables, and build
appealing charts (Microsoft, 2016).

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 General Journal – An accounting tool company’s use to record financial information.

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 General Ledger – A complete record of financial transactions over the life of a company.

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 Trial Balance – A listing of all the balances of the different accounts as of a given time.

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Procedures:
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1. Analyze the following business transactions below.

For December, Mr. Chris Chan had the following transactions:

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Mr. Chris Chan invested P1,000,000 to start the business.

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The firm obtained a note from Mars Bank amounting to P200,000. The note bears a 6% annual
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interest payable every June 1 of the following year. The principal is payable in two (2) equal
1 annual installments.
The firm paid P20,000 for the necessary permits and licenses for its operation.
The firm paid P150,000 for the annual rent of the office space. The lease contract will expire on
June 1 of the following year and will be renewed yearly.
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Chan Accounting Firm rendered service to Gatdula, Inc. worth P270,000 on credit.
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3 Purchased supplies worth P30,000.

Rendered service to Caventa Company for P75,000.
Purchased a laptop in cash, P60,000. The laptop has an estimated useful life of three (3) years,
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with no residual value. The company treats purchases during the first half of the month as a
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purchase at the start of the month.

14 Gatdula, Inc. paid the firm.
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17 Mr. Chris Chan withdrew P100,000 for personal use.

Ocampo Catering billed the firm for P50,000 for the services rendered to its holiday luncheon for
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clients and staff.
Received P70,000 cash in advance from Rivera, Inc. for the services that will be rendered next
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year.
25 Rendered services to Gersaniva Company on credit, P110,000.
28 Rendered taxation services and billed the client, P40,000.
31 Paid P30,000 for the salary of its office staff and utilities worth P16,000.

01 Laboratory Exercise 1 *Property of STI

Page 1 of 6
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 Refer to the chart of accounts below as the amounts are posted in the ledger.

CHART OF ACCOUNTS
Account Account Account
Account Name Account Name Account Name
Number Number Number
101 Cash 201 Accounts Payable 401 Professional Fees
102 Accounts Receivable 202 Notes Payable 501 Salaries Expense
103 Office Supplies 203 Unearned Revenue 503 Utilities Expense
Representation
104 Prepaid Rent 301 C. Chan, Capital 504
Expense
Permits and Licenses
105 Office Equipment 302 C. Chan, Drawing 508
Expense

Required:
a. Journalize the following transactions.
b. Post the journal entries to the ledger.
c. Create a trial balance.

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2. Record each business transaction in a general journal created in MS Excel. Refer to 01 Handout
2 for the quick reference guide on MS Excel.

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a. Select A1 to E1, then click Merge. Type “GENERAL JOURNAL”.
b. Type “Date” on A2, “Particulars” on B2, “PR.” (Posting Reference) on C2, “Debit” on D2,

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and “Credit” on E2.
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c. Adjust the field size.
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d. Apply All Borders.
e. Rename Sheet 1 as “General Journal”.
f. The General Journal should look like this.
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Figure 1. General journal

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3. Post each journal entry in a general ledger created in MS Excel.

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a. Within the same workbook, add a new sheet and rename it as “General Ledger”.
b. Select A1 to G1, then click Merge and type “GENERAL LEDGER”, center align.
c. Type “Account” on cell A2, align left. Select B2 to D2, then click Merge. The name/title of
each account will be encoded here.
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d. Type “Number” on cell E2, left align. Select F2 to G2, then click Merge. The account no.
of each account will be encoded here.
e. Select A3 to A4, then click Merge and type “Date”; center align.
f. Select B3 to B4, then click Merge and type “Item”; center align.
g. Select C3 to C4, then click Merge and type “PR”; center align.

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