MAGADA, MA. LOUELLA O.

1. Basic Navigation

Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements
correct.
1. The Menu Bar displays at the top of the screen. It contains the Windows standard menu (File,
Edit, W window, Help) as well as generic SAP Business One functions.
2. The toolbar is a collection of icon buttons that grant you easy access to commonly-used
functions.
3. Navigation in SAP Business One is done using the Modules Menu. It arranges the functions of
the individual applications in a tree structure.
4. The users of SAP Business One are defined in the User-Setup window.
5. Accessing SAP Business One on Cloud is done using web browsers like Google Chrome,
Mozilla Firefox or Safari.

Exercise 1.2
Identify the terminologies being described by each sentence.
1. This is a business management software that allows an organization to use a system of
integrated applications to manage the business. It aims to serve as a backbone for your whole
business.
- Enterprise Resource Planning (ERP)

2. This is also known as Internal Cloud, is a cloud-based infrastructure operated exclusively for a
single organization with all data protected behind an internal firewall.
-Private Cloud
3. This is also known as External Cloud, is available to the public where data are created and
stored on third-party servers.
-Public Cloud
4. This is a key feature of cloud computing where resources can be accessed anywhere (except
on limitations set by company's internal control).
-Location Independence
5. This the place where SAP, a European multinational software corporation, was founded in
1972.
- Walldorf, Baden- Wurttemberg, Germany
2. Introduction to Fundamentals of Accounting

Exercise 2.1
Fill each blank with the appropriate words or terminologies that will make the statements
correct.
1. Accounting is a systematic process of identifying, recording, measuring, classifying, verifying,
summarizing, interpreting and communicating financial information.
2. Luca Pacioli is known as the Father of Accounting.
3. A business entity is an organization that uses economic resources or inputs to provide goods
or services to customers in exchange for money or other goods and services.
4. Double Entry Bookkeeping is the fundamental concept underlying present-day bookkeeping
and accounting. This is based on the fact that every financial transaction has equal and opposite
effects in at least two different accounts.
5. Accrual Principle is the concept that accounting transactions should be recorded in the
accounting periods when they actually occur, rather than in the periods when there are cash
flows associated with them.
6.Going concern Principle is the concept that a business will remain in operation for the
foreseeable future.
7. Economic entity principle is the concept that the transactions of a business should be kept
separate from those of its owners and other businesses.
8. Monetary Unit principle is the concept that a business should only record transactions that
can be stated in terms of a unit of currency.
9. Full Disclosure principle is the concept that you should include in or alongside the financial
statements of a business all of the information that may impact a reader's understanding of
those financial statements.
10. Double entry bookkeeping is used to satisfy the equation that Assets = Liabilities +Equity.

3. Chart of Accounts

Exercise 3.1
Fill each blank with the appropriate words or terminologies that will make the statements
correct.
1. Chart of Accounts is a financial organizational tool that provides a complete listing of every
account in an accounting system.
2. An account is a unique record for each type of asset, liability, equity, revenue and expense.
3. The balance sheet 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. Bookkeeping balance 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 Financial
module.

4. Subsidiary Ledgers

Exercise 4.1

What is the purpose of subsidiary ledgers?

A subsidiary ledger is a ledger designed for the storage of specific types of accounting
transactions. Once information has been recorded in a subsidiary ledger, it is periodically
summarized and posted to an account in the general ledger, which in turn is used to
construct the financial statements of a company.

By having the details of the accounts receivable activity in a subsidiary ledger, a

company can better control its financial information. For example, the credit manager and
others in the credit department of a company will have access to any and all of the credit
sales information through the subsidiary ledger without having access to any other account
in the company's general ledger.

5. The Accounting Cycle - Journalizing

Exercise 5.1
Fill each blank with the appropriate words or terminologies that will make the statements
correct.
1. Journal is a record of financial transactions in order by date. It is often defined as the book of
original entry.
2. Sales Journal is a special or specialized journal is used to record sales of merchandise to
customers.
3. Cash Receipts Journal is a special journal used to record money received.
4. Purchases Journal is a record of all acquisitions made on credit during a period
5. Cash Disbursement Journal 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

Insert the screenshot of your output here:

Manual Journal Entry and Journal Vouchers

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
P500,000, deposited on the company’s BDO Bank Account.
Dr. Cash in Bank – BDO P 500,000
Cr. Aquino, Capital P 500,000

Insert the screenshot of your output here:

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 25,000

Insert the screenshot of your output here:

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

Insert the screenshot of your output here:

Exercise 5.6
Create the following entries in journal entry through the journal vouchers.

Date Transaction Amount

April 01, 20XX Sansa Aquino invested office Php 850,000
equipment for the business.
April 02, 20XX The owner invested Php 72,000
additional cash through a
bank deposit in Metrobank.
April 03, 20XX Paid transportation for Php 1,750
business related travels.
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.
Insert the screenshot of your output here:
Exercise 5.8
On April 11, 20XX, the company received the billing from Phil health, worth P 3000, for the
employees’ recent salary. Screenshot the journal entry created from the A/P invoice.
Insert the screenshot of your output here:

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.
Insert the screenshot of your output here:
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.
Insert the screenshot of your output here:
Exercise 5.11
On April 16, 20XX, the invoice from Phil health was paid for by cash (based on Exercise 5.7).
Screenshot the journal entry created from the outgoing payment.
Insert the screenshot of your output here:

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.
Insert the screenshot of your output here:
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.
Insert the screenshot of your output here:
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.
Insert the screenshot of your output here:

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.
Insert the screenshot of your output here:

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.
Insert the screenshot of your output here:
Exercise 5.17
On May 10, 20XX, Elvis Presley paid his invoice by cash.
Screenshot the journal entry created from the Incoming Payment.
Insert the screenshot of your output here:

Exercise 5.18
Generate the General Ledger as of the date of the latest transaction.
Insert the screenshot of your output here:

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 Rent P 120,000
Cr. Cash in Bank – BDO P 120,000
(Adjusting Entry) On December 31, 20XX, recognize the rent expense incurred.
Dr. Rent Expense P 70,000
Cr. Prepaid Rent P 70,000
Insert the screenshot of your output here:

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 Hand P 35,000
(Adjusting Entry) On December 31, 20XX, office supplies worth Php 15,000 were used and
expensed.
Dr. Office Supplies P 20,000
Cr. Supplies Expense P 20,000

Insert the screenshot of your output here:

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. Machinery P 20,000
Cr. Cash on Hand P 20,000
(Adjusting Entry) On December 31, 20XX, Office Machinery was computed to have a
depreciated by P 2,500.
Dr. Depreciation Expense – Machinery P 2,500
Cr. Accumulated Depreciation - Machinery P 2,500

Insert the screenshot of your output here:

Exercise 5.22
Generate the unadjusted Trial Balance as of the end of the year.
Insert the screenshot of your output here:
Exercise 5.23
Generate the adjusted Trial Balance as of the end of the year.
Insert the screenshot of your output here:

Exercise 5.24
Generate the Balance Sheet as of the end of the year.
Insert the screenshot of your output here:

Exercise 5.25
Generate the Income Statement for the year ended 20XX.
Insert the screenshot of your output here:

Exercise 5.26
Perform Period End Closing for the year 20XX.
Screenshot the closing entries generated in the Transaction Journal Report.
Insert the screenshot of your output here: