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    WS 6 Preparation of SFP

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    Ericel Monteverde
    The document provides instructions and examples for students to prepare statement of financial position forms, including discussing the objectives of a statement of financial position and key concepts like liquidity, solvency, financial structure, and flexibility. It includes two activities for students to prepare statement of financial position forms for different sample companies using either an account form or report form format.

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    WS 6 Preparation of SFP

    Uploaded by

    Ericel Monteverde
    16 views5 pages
    The document provides instructions and examples for students to prepare statement of financial position forms, including discussing the objectives of a statement of financial position and key concepts like liquidity, solvency, financial structure, and flexibility. It includes two activities for students to prepare statement of financial position forms for different sample companies using either an account form or report form format.

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    The document provides instructions and examples for students to prepare statement of financial position forms, including discussing the objectives of a statement of financial position and key concepts like liquidity, solvency, financial structure, and flexibility. It includes two activities for students to prepare statement of financial position forms for different sample companies using either an account form or report form format.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views5 pages

    WS 6 Preparation of SFP

    Uploaded by

    Ericel Monteverde
    The document provides instructions and examples for students to prepare statement of financial position forms, including discussing the objectives of a statement of financial position and key concepts like liquidity, solvency, financial structure, and flexibility. It includes two activities for students to prepare statement of financial position forms for different sample companies using either an account form or report form format.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Student: Teacher: Pinky F.

    Sarmiento-Tacason
    Section: Date of Submission:

    Quarter 1 Week 2 Work Sheet No. 6

    Preparation of Statement of Financial Position (SFP)

    Objectives: The learner are able to prepare an SFP account form and report form with proper
    classification of items as current and noncurrent.

    Discussion:

    Statement of Financial Position is composed of the Assets, Liabilities and Capital of the
    Company. It provides insights as to liquidity, solvency, financial structure and flexibility of the company.

    Liquidity- pertains to the capacity of the company to pay for its currently maturing obligations.
    The company has enough current assets to settle for its current liabilities.

    Solvency is the ability of the company to pay for its long term obligations

    Financial Structure shows the composition of the claims over the assets of the company. It
    provides insight whether the assets of the company are financed more from creditors or the
    company equity.

    Flexibility is thecapacity of the company to adapt to various circumstances i.e. grab possible
    opportunities or adjust in possible unfavorable situations

    Applying the concept discussed in work sheet no. 1, we can now draft a Statement of Financial
    Position.

    The parts of SFP are as follows:


    There two format in the preparation of SFP namely account form and report form

    Account Form
    Activity No. 1

    Directions: Prepare a Statement of Financial Position of Faye Enterprises Accounts for year ended
    December 31, 2016 Report Form. (Use Microsoft excel if available)

    December 31, 2016


    Activity No. 2

    Directions: Below are the accounts of Celestina Trading for the year ended December 31, 2015. Prepare
    a Statement of Financial Position using Account Form. (Use Microsoft excel if available)

    Cash in Banco de Plata 8,000,000.00


    Cash in Metro Pacific Bank 2,000,000.00
    Petty Cash Fund 50,000.00
    Change Cash Fund 25,000.00
    Cash Equivalents 100,000.00
    Accounts Receivables 2,000,000.00
    Notes Receivables 200,000.00
    Raw Materials 600,000.00
    Work in Progress 400,000.00
    Finished Goods 1,000,000.00
    Land Used as Plant Site 1,000,000.00
    Vehicles 2,000,000.00
    Accumulated Depreciation-Vehicles 200,000.00
    Fixtures 1,000,000.00
    Accumulated Depreciation-Fixtures 100,000.00
    Patents 1,000,000.00
    Accumulated Amortization - Patents 100,000.00
    Trademarks 1,000,000.00
    Accumulated Amortization - Trademarks 100,000.00
    Land Held for Fair Value Appreciation 10,000,000.00
    Accounts Payable 2,000,000.00
    Notes Payable 20,875,000.00 1,000,000.00
    Interest Payable 100,000.00
    Income Tax Payable 900,000.00
    Long-term Debt 5,000,000.00
    Capital 20,875,500.00

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