1
ACCOUNTING AND ITS ENVIRONMENT
LABORATORY EXERCISE 1
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
Identify the term being describe in each statement. Write your answers on the answer sheet
provided below.
1. A type of business that buys goods and sells them at a higher price.
2. A form of business with only one owner.
3. Activities that are done to provide services to clients and sell products to customers
4. The principle where revenues are recorded when they are earned and not when cash is
collected.
5. The concept that assumes that the entity will operate indefinitely unless there is evidence
to the contrary.
6. This concept allows timely evaluation of the entities performance and position.
7. This concept requires that the business does not record personal transactions of the owner.
8. The activities of the business involves acquisition and disposal of resources that are used for
transformation to provide products and services to the customer.
9. Its function is to provide quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
10. A type of business that provides services for a fee.
Answer Sheet.
1. Merchandising
2. Sole Proprietorship
3. Manufacturing
4. Matching Principle
5. Going Concern
6. Entity Concept
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7. Periodicity Concept
8. Investing Activity
9. Recording
10. Services
LABORATORY EXERCISE 2
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
Imagine that you are back in Kabacan. Provide examples of serving and merchandising
business that can be found in Kabacan under each of the appropriate classification below. If
you haven’t been in Kabacan, think of Kidapawan.
Servicing
1. Gloria’s salon
2. Highland vet clinic
3. Collado funeral
Merchandising
1. Kmcc
2. Gaisano grand mall
3. Unisan
Consider the Philippines and its economy. Provide examples of business/companies that
can be found in the country that can be considered as a manufacturing entity.
Manufacturing
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1. JMD Hollow blocks Factory
2. Cotabato Bamboo Network
3. Banana Chips
LABORATORY EXERCISE 3
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
CLASSIFY THE FOLLOWING ENTITIES. Write “S” for servicing entities, “MER” for
merchandising entities and “MAN” for manufacturing entities on the space provided before
the number.
S
1. Car Wash
MAN
6. Food processing company
MER
2. Pharmacy
MAN
7. Furniture makers
S
3. Beauty salon
S
8. School
MER
4. Grocery store
MER
9. Bookstore
S
5. Car repair shop
S
10. Hotel
CLASSIFY THE FOLLOWING ACTIVITES OF A BUSINESS ENTITY. Write “F” for financing
activity, “I” for investing activity and “O” for operating activity.
F
1. Obtaining a loan
from the bank
O
2. Paying salary to
employees
O
3. Buying a delivery
truck for the business
I
6. Acquisition of a new
factory building
I
7. Acquisition of new
machinery
O
8. Payment of office space
rental
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4. Paying the loan from
the bank
F
5. Paying electricity
used in the business
O
2
THE FINANCIAL
ELEMENTS
F
9. Obtaining a loan from a
financing company (Ex. King
Cooperative)
F
10. Receipt of cash from
services rendered to
customers
STATEMENTS
AND
ITS
LABORATORY EXERCISE 1
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
Identify the term being describe in each statement. Write your answers on the answer sheet
provided below.
1. The statement that provides a listing the assets, liabilities and owner’s equity as at a specific
date.
2. It is the characteristic that gives the information the ability to make a difference in the
decision made by the users.
3. The statement that shows the financial performance of the entity.
4. The statement that summarizes the changes that occurred in owner's equity.
5. It is the characteristic that allows the statement to present the substance of the occurrence
when the substance and the legal form differs.
6. The characteristic that means that the information is available in time for use to influence
the decision of users of financial statements.
7. It is a present economic resource controlled by the entity as a result of past events.
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8. These are increases in assets, or decreases in liabilities, that result in increases in equity,
other than those relating to contributions from holders of equity claims.
9. It is a present obligation of the entity to transfer an economic resource as a result of past
events.
10. The characteristic that means that different independent observer will reach the same
conclusion about the economic occurrence
Answer Sheet.
1. The Balance Sheet
2. Relevance
3. Financial Statement
4. Statement of Retained Earnings
5. Substance over form
6. Information Relevance
7. Asset
8. Revenue
9. Liability
10. Verifiability
LABORATORY EXERCISE 2
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
CLASSIFY THE FOLLOWING ACCOUNTS. Write shade “A” for Asset, shade “B” for
Liabilities, shade “C” for Owner’s equity, shade “D” for Income or shade “E” for Expenses.
Use the answer sheet provided below.
A
1. Cash
E
11. Adverting expense
E
2. Utilities expense
E
12. Interest expense
E
3. Depreciation expense
D
13. Consultancy revenue
D
4. Repair revenue
A
14. Computer equipment
E
5. Rent expense
A
15. Building
A
6. Prepaid rent
B
16. Notes payable (payable in 5 yrs)
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D
7. Advances to employees
B
17. Accounts payable
D
8. Advances from customers
A
18. School supplies (sold by
National Bookstore)
A
9. Land
A
19. Cleaning Supplies (of a Hotel
Entity)
A
10. Vehicle
A
20. Accounts receivable
CLASSIFY THE FOLLOWING ACCOUNTS. Write “CA” for Current Asset or “NCA” for
Noncurrent Assets on the box before the number.
CA
1. Cash
NCA
6.Delivery van
CA
2. Accounts receivable
NCA
7. Building
NCA
3. Land
CA
8. Cash register
NCA
4. Dinning utensils
CA
9. Supplies
NCA
5. Office appliances
CA
10. Prepaid rent
ENUMERATING ELEMENTS: Imagine a grocery store (Ex. Superama) list down samples of
its assets and expenses.
ASSETS (5 examples)
EXPENSES (5 example)
1 . SUPPLIES
1. SALARY EXPENSE
2 . COMPUTER EQUIPMENT
2 MORTAGE
3 .CASH
3 TAX
4 . ACCOUNTS RECEIVABLE
4 UTILITIES EXPENSE
5 . SHELVS
5 INSURANCE
3
AND THE ACCOUNTING CYCLE
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THE ACCOUNT, THE ACCOUNTING EQUATION
LABORATORY EXERCISE 1
Name: QUENNY GIE C. RAS
Score:
Course/Yr/Section: 1BSBA-A
Date: 02-17-22
Determine the Unknown Values in the Accounting Equation
Assets
Liabilities
Owner’s Equity
1
100, 000
45, 000
55,000
2
220,000
120, 000
100, 000
3
500, 500
340,000
210, 000
4
40, 600
25, 000
15,600
5
10, 000
2,200
7, 800
6
205,000
85, 000
120, 000
7
80, 000
32, 000
48,000
8
445, 000
195,000
250, 000
9
125, 400
86, 500
38,900
10
56,500
20, 000
36, 500
Determine the Unknown Values in the Accounting Equation
11. 470,000 As of the end of the period, Mac Torres brokerage firm has a total assets of 970,
000 and total liabilities of 500, 000. What is the equity of the firm?
12. 150,000 Joshua Israel opened a servicing business. The total assets amounts to 500, 000.
If the total liabilities are 70% of the asset, how much is the owner’s equity?
13. 980,000 Caleb opened a repair business. At the end of the year, total liabilities amounts
to 350, 000 and the equity amounts to 630, 000. How much is the total assets of the entity?
14. 105,000 At the end of the year, the total assets of the business increased by 200, 000
while the liabilities increased by 95, 000. How much is the increase in owner’s equity.
15. 136,000 Simon Peter opened a repair shop. The total assets amounts to 340, 000. If the
total owner’s equity are 60% of the asset, how much is the liabilities?
Computation of Profit and Loss
16. 200,000
At the end of the period, JV Consultancy has 430, 000 revenues and 230, 000
expense. What is the amount of profit or loss?
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17. 109,500
At the end of the period, JVB Painting Services has 200, 500 revenues and 310,
000 expenses. What is the amount of profit or loss?
18. 55,000
The result at the end of SB Delivery Services is a 120, 000 profit. If the revenue
at the end of the period amounts to 175, 000, what is the amount of expenses?
19. 105,000
The result of the operations of JS Motor Rental is a 30, 000 loss. If the revenue
at the end of the period amounts to 75, 000, what is the amount of expenses?
20. 35,000
The result of the operations of DI Consultancy is a 20, 000 profit. If the expenses
at the end of the period amounts to 15, 000, what is the amount of revenue?
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