Fundamentals of ABM 2 SFP

Fundamentals
of ABM 2
MRS. JUDITH P. ZAPAN T A
DAILY ROUTINE:
Prayer
DAILY ROUTINE:
Checking of Attendance
DAILY ROUTINE:
Review
REMINDERS:
REQUIREMENTS: COMMUNICATION: GRADE

✓ Notebook ▪ FB Group REQUIREMENTS:
✓ Calculator/CP ▪ Messenger ➢ Attendance
✓ Ballpen/Pencil ▪ Call/Text ➢ Outputs
✓ Module ➢ Exam
Statement of
CONTENT Financial Position
The learner demonstrates an
understanding of account titles under
the assets, liabilities, and capital
accounts of the Statement of Financial
CONTENT
Position, namely cash, receivables,
inventories, prepaid expenses,
STANDARD
property, plant and equipment,
payables accrued expenses,
unearned income, long-term liabilities,
and capital that will equip him/her
in the preparation of the SFP using the
report form and account form.
PERFORMANCE
STANDARD
The learner are able to solve exercises and problems
that require preparation of an SFP for a single proprietorship with
proper classification of accounts as current and noncurrent
using the report form and the account form
MOST ESSENTIAL LEARNING
COMPETENCIES
Prepare an SFP using the

Identify the elements of report form and the account
the SFP and form with proper classification
describe each of these of items as current and
noncurrent
What I know
Cash Accounts Payable Reyes, Capital Service Revenue
Activity # 1 Reyes, Drawings Supplies Accounts Receivable Equipment
Prepaid Rent Loans Payable Salaries Expense
Rent Expense Building Utilities Expense Notes Payable
Assets Liabilities Owner's Equity Income Expenses

Review
Essence of Financial
Statements
Per revised Philippine Accounting Standards (PAS) No. 1,

“the objective of financial statements is to provide
information about the financial position, financial
performance and cash flows of an entity that is useful to a
wide range of users in making economic decisions.”
Essence of Financial
Statements
• The financial statements are the means by which the
information accumulated and processed in financial
accounting is periodically communicated to the users.
• Without accounting information embodied in the financial
statements, users may not be able to arrive at sound
economic decisions.
Complete Set of
Financial Statements
1. A statement of financial position at the end of the period
2. A statement of comprehensive income for the period
3. A statement of changes in equity for the period
4. A statement of cash flows for the period
5. Notes, comprising a summary of significant accounting
policies and other explanatory information
Preparing the
Financial Statements
• Once the worksheet is completed, it is easy to prepare the
financial statements for the account balances have been
extended to the appropriate income statement and balance
sheet columns.
• Most of the information needed to prepare the income
statement, statement of changes in equity and balance sheet
are available from the worksheet.
Statement of
Financial Position
• It is a statement that shows the financial position or
condition of an entity by listing the assets, liabilities and
owner’s equity as at a specific date.
• Users of financial statements analyze the balance sheet to
evaluate the entity’s liquidity, solvency, financial flexibility
and financial structure.
Activity # 3:
Group each asset and liability account as to
current or non current
Assets Liabilities
Cash Accounts Payable
ASSETS LIABILITIES
Accounts Receivable Loans Payable
Equipment
Notes Payable Current Noncurrent Current Noncurrent
Prepaid Rent
Building
Supplies
Statement of Financial
Position: Format
Report Form Account Form – lists the

– simply lists the assets, asset on the left side and
followed by the liabilities the liabilities and owner’s
then by the owner’s equity equity on the right side
in vertical sequence
Statement of Financial
Position: Format
Report Form Account Form
Statement of Financial Position
Parts of SFP
a. Heading
i. Name of the Company
ii. Name of the Statement
iii. Date of preparation
b. Assets
i. Current Assets
ii. Noncurrent Assets
c. Total Assets
d. Liabilities
i. Current Liabilities
ii. Noncurrent Liabilities
e. Owner’s Equity
f. Total Liabilities and Owner’s Equity
Practice Exercises No.1
Answer the following questions:
1.Learning is Fun Company had current assets amounting to P100,000. Noncurrent assets for the
year totaled P76,000. How much is the company’s total assets?
2.Happy Selling Company’s total liabilities amounted P10,000. Total equity had an ending
balance of P20,000. How much is total assets?
3.Happy Selling’s had the following accounts at year-end. Cash – 250,000, Accounts Payable –
70,000, Prepaid Expense – 15,000. Compute for the company’s current assets.
4.Happy Selling’s Account Receivable amounted to P500,000. Prepaid Expense and Unearned
Income totaled P30,000 and P10,000, respectively. Cash balance amounted to P100,000
while Accounts Payable and Inventory totaled to P20,000and P10,000, respectively. How
much is the company’s current assets? Current liabilities?
5.Company’s Total Liabilities and Equity amounted to P285,000. Total noncurrent assets ended
at P85,000. Cash totaled P50,000. Inventory amounted to P100,000. Assuming there are no
other current liabilities, compute for the company’s noncurrent liabilities.
Reinforcement Activity No.1
Prepare a Statement of Financial Position using the following accounts (one

in report form and one in account form)
Cash – P5,000
Loans Payable – P77,500
Accounts Receivable – P2,600
Supplies – P2,300
Equipment – P17,000
Owner’s equity – P40,000
Accounts Payable – P22,400
Building – 113,000
Reinforcement Activity No.1
Prepare a Statement of Financial Position for the company ( one in report form and one in
account form)
You were hired by Mr. Juan Dela Cruz to prepare his sari-sari store’s Statement of Financial
Position given the following transactions.
1. His sari-sari store has cash deposited in a bank account amounting to P50,000
2. His sari-sari store had a lot of uncollected sales from customers amounting to P75,000
3. The total amount of merchandise left inside the store is P30,000
4. He already paid one year’s rent in advance amounting to P12,000
5. The value of all the company’s furniture amounted to P100,000
6. He bought merchandise from his supplier amounting to P25,000 and the supplier agreed that
payment can be made 2 months after year-end SSS, Philhealth and Pag-ibig Payables for his
one employee totaled P5,000
7. The sari-sari store had outstanding liabilities to utility companies amounting to P3,000
8. He had a loan from the bank amounting to P50,000 to be paid in 3 years.

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Fundamentals

REQUIREMENTS: COMMUNICATION: GRADE

Prepare an SFP using the

Activity # 1 Reyes, Drawings Supplies Accounts Receivable Equipment

Prepaid Rent Loans Payable Salaries Expense

Rent Expense Building Utilities Expense Notes Payable

Assets Liabilities Owner's Equity Income Expenses

Per revised Philippine Accounting Standards (PAS) No. 1,

Report Form Account Form – lists the

Prepare a Statement of Financial Position using the following accounts (one

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