EXERCISE WORKBOOK

Smartbooks Fundamentals of
Accounting with Analytics
Basic Navigation
Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

1. Navigation in Smartbooks is done using the modules menu/main menu. This menu contains a
list of all modules with their related options.

2. The status bar extends along the entire lower edge of the Smartbooks main window and
contains various fields.

3. A/an error message appears on a red background and informs you that the procedure cannot
continue until corrective action is taken.

4. A/an confirmation message appears on a green background and confirms the successful
execution of a procedure.

5. A document links function is normally linked with the master data and documents. Using it
will open the detailed information.

Exercise 1.2
Identify the terminologies being described by each sentence.

Smartbooks 1. This application facilitates data sharing, information flows, and introduction of
common business practices among business units in the organization. It enables an organization to
automate and integrate its key business processes.

Private Cloud 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.

Public cloud 3. This is also known as External Cloud, is available to the public where data are
created and stored on third-party servers.

Location Independence 4. This is a key feature of cloud computing where resources can be
accessed anywhere (except on limitations set by company's internal control).

General Ledger/Financial Reporting 5. It is one of the major units of Smartbooks that produces the
traditional Financial Statements, such as Income Statement, Balance Sheet, Statement of Cash
Flow, Tax Returns, Reports / Schedules, and other reports mandated by the government.
2. Chart of Accounts
Exercise 2.1
C. 1. What do you call the type of an account that is used for creating journal entries, whether
manual or system-generated inside Smartbooks?

A. Parent Account C. Postable Account

B. Cash Account D. Both A and C

False 2. (True or False) G/L Account in Smartbooks Cloud Accounting is specific and unique to enable
unnecessary account repetitions as reference to its branch accounting feature. _________

Accounting 3. Chart of Accounts of Smartbooks Cloud Accounting can be viewed and managed through
the _________ module.

Financial/Balance Sheet 4. 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.

Temporary/Income statement 5. ______________________ accounts has to be cleared at the end of

each fiscal year through Period End Closing process.
 Accounting Cycle
Exercise 3.1 Manual Journal Entry
Financials > Journal VouchersPost the following journal entries:

Transaction Date Particulars Amount Entry

3.1 A January The owner invested a start-up cash for the Php 500,000 Dr. Cash on Hand 500,000
01, business. Cr. Aquino, Capital 500,000
20XX
3.1 B January Purchased office equipment for cash Php 75, 000 Dr. Office Equipment 75,000
02, Cr. Cash on Hand 75,000
20XX
3.1 C January Payment of 1-year rental for cash Php 60,000 Dr. Prepaid Rent 60,000
07, Cr. Cash on Hand 60,000
20XX
3.1 D January Paid business registration and municipal Php 13,000 Dr. Taxes & Licenses 13,000
10, tax Cr. Cash on Hand 13,000
20XX
3.1 E January Rode a taxi to get the supplies to the main Php 2,000 Dr. Transportation 2,000
13, office Cr. Cash on Hand 2,000
20XX

After performing the exercises, please put the screenshot of the journal entry for each transaction in
the boxes below.
Output Screenshot- Exercise 3.1

Transaction 3.1 A
Insert the screenshot below:

Transaction 3.1 B
Insert the screenshot below:
Transaction 3.1 C
Insert the screenshot below:

Transaction 3.1 D
Insert the screenshot below:
Transaction 3.1 E
Insert the screenshot below:
Exercise 3.2 Journal Entry List
Financials > Reports > Journal Entry List

Generate the Journal Entry list for the created transaction in Exercise 3.1.

Screenshot the output of the transaction generated in the box below.

Output Screenshot- Exercise 3.2

Exercise 4.1 Recurring Entry
Financials > Recurring Postings

Make a recurring posting with the ff. details below.

Screenshot the output created in the box below.

Code: EW_(Section Name + Student's Initials)

Description: Electricity & Water Payment
Journal Entry: Electricity & Water 2,000
Cash on Hand 2,000
Frequency: Monthly
Start/End Date: January 17, 20XX December 17, 20XX

Output Screenshot- Exercise 4.1

Exercise 5.1 Purchases Journal
Purchases > AP Voucher

Record the ff. transactions using the A/P Voucher document:

Transaction Particulars
5.1 A On February 3, 20XX, the company received the billing from PLDT worth Php
11200 (tax inclusive). It is to be recorded as Communication Expense on the AP
Voucher.

5.1 B On February 11, 20XX, the company received the billing from Philhealth, worth
Php 3000, for the employees’ recent salary.
5.1 C On February 14, 20XX, the company received the billing from SSS, worth Php
5000, for the employees’ recent salary.
After performing the exercises, please put the screenshot of the document and journal entry for each
transaction in the boxes below.
Output Screenshot- Exercise 5.1
Transaction 5.1 A
Insert the screenshot below:

AP DOCUMENT

JOURNAL ENTRY
Transaction 5.1 B
Insert the screenshot below:

AP DOCUMENT

JOURNAL ENTRY
Transaction 5.1 C
Insert the screenshot below:

AP DOCUMENT

JOURNAL ENTRY
Exercise 6.1 Cash Disbursement Journal
Treasury > Cash Outflows > Cash Outflows-Supplier

Perform the ff. payment transaction to the ff. suppliers using the Cash Outflows document

Transaction Particulars In reference to

6.1 A On March 15, 20XX, the invoice from PLDT was paid for by Exercise 5.1 A
cash.
6.1 B On March 16, 20XX, the invoice from Philhealth was paid for Exercise 5.1 B
by cash
6.1 C On March 17, 20XX, the invoice from SSS was paid for by cash. Exercise 5.1 C

After performing the exercises, please put the screenshot of the document and journal entry for each
transaction in the boxes below.

Output Screenshot- Exercise 6.1

Transaction 6.1 A
Insert the screenshot below:

PAYMENT DOCUMENT
JOURNAL ENTRY

Transaction 6.1 B
Insert the screenshot below:

PAYMENT DOCUMENT
JOURNAL ENTRY

Transaction 6.1 C
Insert the screenshot below:

PAYMENT DOCUMENT
JOURNAL ENTRY
Exercise 7.1 Sales Journal
Sales > Invoice

Record the ff. transactions using the Invoice document:

Transaction Particulars
7.1 A On April 1, 20XX, the company billed Buzz Abunda for the services it
rendered worth P 50,000 (tax exclusive). It is to be recorded as Sales and
Service Revenue in the invoice.
7.1 B On April 5, 20XX, the company rendered service to Dress Wonders
amounted to P 80,000 (tax included). It is to be recorded as Sales and
Service Revenue in the invoice.
After performing the exercises, please put the screenshot of the document and journal entry for each
transaction in the boxes below..
Output Screenshot- Exercise 7.1
Transaction 7.1 A
Insert the screenshot below:

AR DOCUMENT

JOURNAL ENTRY
Transaction 7.1 B
Insert the screenshot below:

AR DOCUMENT

JOURNAL ENTRY
Exercise 8.1 Cash Receipts Journal
Treasury > Cash Inflows > Cash Inflows-Customer

Perform the ff. payment transaction to the ff. suppliers using the Cash Inflows document

Transaction Particulars In reference

to
8.1 A On May 3, 20XX, the invoice to Buzz Abunda was collected for Exercise 7.1 A
by cash.
8.1 B On May 6, 20XX, the invoice from Dress Wonders was Exercise 7.1 B
collected for by cash

After performing the exercises, please put the screenshot of the document and journal entry for each
transaction in the boxes below.
Output Screenshot- Exercise 8.1
Transaction 8.1 A
Insert the screenshot below:

COLLECTION DOCUMENT

JOURNAL ENTRY
Transaction 8.1 B
Insert the screenshot below:

COLLECTION DOCUMENT

JOURNAL ENTRY
Exercise 9.1 General Ledger
Financials > Reports > General Ledger

Generate and download a detailed crystallized G/L report and submit to your instructor

9.1 A
Branch: ALL
G/L: 10110101 – Cash on Hand
Date: January 1, 20XX to December 31, 20XX
 9.1 B
Branch: ALL
G/L: 20100100 – Accounts Payable
Date: January 1, 20XX to December 31, 20XX
9.1 C
Branch: ALL
G/L: 10210100 – Accounts Receivable
Date: January 1, 20XX to December 31, 20XX
Exercise 10.1 Subsidiary Ledger
Financials > Reports > Subsidiary Ledger

Generate a detailed Subsidiary Ledger.

Screenshot the output of the transaction generated in the box below.

10.1 A

S/L Type: Supplier

S/L Account No: S00002- PLDT
G/L Account No: 20100100- Accounts Payable
Date: January 1, 20XX to December 31, 20XX

10.1 B

S/L Type: Customer

S/L Account No: MAIN-C00003- Dress Wonders
G/L Account No: 10210100- Accounts Receivable
Date: January 1, 20XX to December 31, 20XX
Output Screenshot- Exercise 10.1

10.1 A

10.1 B
Exercise 11.1 Adjusting Entry
Financials > Journal Vouchers > input notes as Adjusting Entry

11.1 A

At the end of the year, salaries amounting to Php12,000 was accrued. Make an adjusting entry to
recognize salaries expense.

Salaries and Wages 12,000

Accrued Payable 12,000
Accrual of salaries at end year-end
Journal Date: Current date
Creation Date: December 31, 20XX

Insert the screenshot below:

11.1 B

Make an adjusting entry to depreciate the Office Equipment. Useful life is 5 years and salvage value is
10%. Use straight line method.

Depreciation Expense – Office Equipment 13,500

Accum. Depreciation - Office Equipment 13,500
Depreciation of office equipment for the year
Journal Date: Current date
Creation Date: December 31, 20XX

Insert the screenshot below:

11.1 C

At the end of the year, rent for 6 months was used. Make an adjusting entry.

Rental Expense 30,000

Prepaid Rent 30,000
Adjustment of utilized prepaid rent

Journal Date: Current date

Creation Date: December 31, 20XX

Insert the screenshot below:

Exercise 12.1 Trial Balance
Financials > Reports > Trial Balance

Generate and download a detailed crystallized trial balance report and submit to your instructor

Profit Center: ALL

Branch: Head Office
As of: December 31, 20XX

Insert the screenshot below:

Exercise 13.1 Financial Statements
Generate a crystalized report.
Balance Sheet – As of December 31, 20xx

Insert the screenshot below:

https://www.investopedia.com/terms/l/liability.asp
Statement of Profit and Loss

Generate a crystalized report.

Income Statement / Profit or Loss – January 1, 20xx to December 31, 20xx

Insert the screenshot below:

Exercise 14.1 Closing Entries
Close the temporary accounts.
Closing Period: December 20xx

Insert the screenshot below:

6. Case Study – Merchandising

A&B Apparel started their clothing business and completed the following transactions in 20xx.

Exercise 16.1 Manual Journal Entry

Post the following journal entries in Smartbooks. Accounts to be used are provided below.

Jan 15 The entity made an initial investment P500,000.

Feb 14 Purchased the following items from S00006:
I00005 – 65 units
I00007 – 45 units
I00010 – 30 units

Feb 28 Acquired Furniture & Fixtures, P65,000. The entity estimates that the useful life is 7 years.
Mar 1 Paid rent for 2 years, P38,000. Use asset method.
Mar 15 Sold the following items:

Customer Item Qty

MAIN-C00006 I00007 20
MAIN-C00008 I00010 18

Mar 14 Paid the purchases made from S00006.

Apr 1 Received full payment from MAIN-C00006.
Apr 7 Received full payment from MAIN-C00008.
May 8 Sold the following items:

Customer Item Qty

MAIN-C00001 I00005 32
MAIN-C00007 I00007 14

Jun 6 Purchased the following items from S00003:

I00001 – 15 units
I00006 – 25 units
I00009 – 29 units
Jun 8 Sold the following items:

Customer Item Qty

MAIN-C00003 I00006 13
MAIN-C00008 I00009 24
 Jul 6 Paid the purchases
made from S00003.
Jul 8 Received full payment from MAIN-C00003 and MAIN-C00008.
Aug 15 Paid salaries P40,000.
Oct 1 Obtained a 1-yr 3% loan from D&E Bank for P80,000.

Exercise 17.1 Adjusting Entry

Make an adjusting entry for the following on December 31, 20xx:

1. Depreciate Furniture & Fixtures using straight line method.

2. Adjust rent paid last Mar 1.
3. Accrue salaries amounting to P14,000

Use the following G/L Accounts:

G/L Account No. G/L Account Name

Assets
10110101 Cash on Hand
15110200 Furniture & Fixtures
15180200 Accumulated Dep'n - Furniture & Fixtures
10420100 Prepaid Rent
10210100 Accounts Receivable
Liabilities
20110200 Loan Payable
20100100 Accounts Payable
20120200 Accrued Payable
Equity
30110100 Authorized Capital Stock
Expenses
60001010 Salaries & Wages
60011010 Depreciation Expense - Furniture & Fixtures
60006010 Rental Expense
 Exercise 17.1 Trial Balance
Generate trial balance as of December 31, 20xx.

Exercise 18.1 Financial Statements

Generate the following:

Profit and Loss Statement – For the year 20xx

Balance Sheet - As of December 31, 20xx

Insert the screenshots of your answers below:

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