September 6, 2022 | Author: Anonymous | Category: N/A
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www.shsph.blogspot.com Fundamentals of Accoun tancy, Busin ess and Manage Fundamentals Management ment 2 – Grade 12 Al ter nat iv e Deliver Deli ver y Mode Mo de Quarter 1 – Module 1: Statement of Financial Position (SFP) First Edition, 2020 Republic Act 8293, section 176 states 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education, Division of Palawan Schools Division Superintendent: Superintendent: Natividad P. Bayubay, CESO VI Assistant Schools Schools Division Superintenden Superintendents: ts: Loida P. Olavario, Ph.D. Felix M. Pamaran Development Team of the Module Writers: Daisy S. Dela Peña Content Editors: Editors: Edheson Edheson M. Gapad Gapad Mark G. Javillonar Language Editor: Marianne Editor: Marianne R. Valdez Reviewers: Eric N. Quillip Layout Artist: Mark Artist: Mark G. Javillonar Management Mana gement Team: Team: Aurelia Aurelia B. Marquez Marquez Rodgie S. Demalinao Eric N. Quillip Printed in the Philippines by ________________________ Department of Education – MIMAROPA Region – Schools Division of Palawan Office Address: Telephone: E-mail Address: Website:
PEO Road, Bgy. Bancao-Bancao, Puerto Princesa City (048) 433-6392
[email protected] www.depedpalawan.com
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Introductory Introduct ory Message For the facilitator: Welcome to the Fundamentals of Accountancy, Business and Management 2 – Grade 12 Modular Distance Learning (MDL) Self-Learning Module on the Statement of Financial Position (SFP)! This module was collaboratively designed, developed and reviewed by educators from public institution to assist you, the teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum Most Essential Learning Competencies (MELCs) in the “New Normal” situation while overcoming their personal, social, and economic constraints in schooling. This learning resource hopes to engage the learners into guided and independent learning activities at their own pace and time. Furthermore, this also aims to help learners acquire the needed 21st century skills while taking into consideration their needs and circumstances. In addition to the material in the main text, you will also see this box in the body of the module:
Notes to the Teacher This contains helpful tips or strategies that will help you in guiding the learners.
As a facilitator, you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Furthermore, you are expected to encourage and assist the learners as they do the tasks included in the module.
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www.shsph.blogspot.com For the learner: Welcome to the Fundamentals of Accountancy, Business and Management 2 – Grade 12 Modular Distance Learning (MDL) Self-Learning Module on the Statement of Financial Position (SFP)! This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning resource while being an active learner. This module has the following parts and corresponding corresponding icons: What I Need to Know
This will give you an idea of the skills or competencies you are expected to learn in the module.
What I Know
This part includes an activity that aims to check what you already know about the lesson to take. If you get all the answers correct (100%), you may decide to skip this module.
What’s In
This is a brief drill or review to help hel p you link the current lesson with the previous one.
What’s New
In this portion, the new lesson will be introduced to you in various ways; a story, a song, a poem, a problem opener, an activity or a situation.
What is It
This section provides a brief discussion of the lesson. This aims to help you discover and understand new concepts and skills.
What’s More
This comprises activities for independent practice to solidify your understanding and skills of the topic. You may check the answers to the exercises using the Answer Key at the end of the module.
What I Have Learned
This includes questions or blank sentence/paragraph to be filled into process what you learned from the lesson.
What I Can Do
This section provides an activity which will help you transfer your new knowledge or skill into real life situations or concerns.
Assessment
This is a task which aims to evaluate your level of mastery in achieving the learning competency. iv
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Answer Key
In this portion, another activity will be given to you to enrich your knowledge or skill of the lesson learned. This contains answers ans wers to all activities in the module.
At the end of this module you will also find:
References
This is a list of all developing this module.
sources
used
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The following are some reminders in using this modu module: le: 1. 1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate sheet of paper in answering the exercises. 2. 2. Don’t forget to answer What I Know before before moving on to the other activities included in the module. 3. 3. Read the instruction carefully before doing each task. 4. 4. Observe honesty and integrity in doing the tasks and checking your answers. 5. 5. Finish the task at hand before proceeding to the next. 6. 6. Return this module to your teacher/facilitator once you are through with it. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Always bear in mind that you are not alone. We hope that through this material, you will experience meaningful learning and gain deep understanding of the relevant competencies. compe tencies. You can do it!
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What I Need to Know
This module was designed and written with you in mind. It is here to help you master the Statement of Financial Position (SFP). The scope of this module permits it to be used in many different learning situations. The language used recognizes the diverse vocabulary level of students. The lessons are arranged to follow the standard sequence of the course. But the order in which you read them can be changed to correspond with the textbook you are now using. The module is composed of one lesson, namely: Lesson 1 – 1 – Identify Identify the element of the Statement of Financial Position (SFP) and describe each of them.
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After going through this module, you are expected to: 1. 1. identify the elements of the SFP and describe each of them; 2. 2. prepare an SFP using the report form and the account form with proper classification of items as current and noncurrent; and 3. 3. appreciate the importance of the SFP in a business organization.
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What I Know
Directions: Choose the letter of the best answer and write your answer on a Directions: separate sheet of paper. 1. 1. It pertains to resources which are controlled and owned by the business. a. a. Assets c. Equity b. b. Liabilities d. Resources 2. 2. It is derived from deducting the total liabilities to the total assets of a company. a. a. Assets c. Equity b. b. Liabilities d. Resources 3. 3. Which of the following pertains to the obligations that the business owed to other entities arising from past events which are to be settled in the future? a. a. Assets c. Equity b. b. Liabilities
d. Resources
4. 4. Which of the following is the correct Accounting Equation? a. a. Assets + Liabilities = Equity c. Assets = Liabilities + Equity b. b. Assets = Liabilities - Equity d. Assets + Equity = Liabilities 5. 5. Which of the following is classified as Current Asset? Asset ? a. a. Prepaid Expenses c. Delivery Vehicle b. b. Land d. Copyright 6. 6. Which of the following financial statements presents the financial position of an entity at a given or specific date? a. a. Income Statement c. Statement of Changes in Equity b. b. Statement of Financial Position d. Statement of Cash Flows 7. 7. All of the following are classified as Assets, EXCEPT EXCEPT:: a. a. Accounts Receivable c. Building b. b. Inventory d. Accounts Payable 8. 8. Which of the following is classified as a non-current non-current liability? a. a. Accounts Payable c. Utilities Payable b. b. Mortgage Payable d. Unearned Revenue 9. 9. Which of the following is classified as a current asset? a. a. Prepaid Rent c. Investments b. b. Unearned Rent d. Drawings
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www.shsph.blogspot.com 10. In which part of Statement of Financial Position does the Salaries Payable be 10. listed? a. a. Assets c. Owner’s Equity b. b. Liabilities d. Expenses 11. The 11. The following are elements of Statement of Financial Position Position EXCEPT EXCEPT:: a. a. Assets c. Equity b. b. Liabilities d. Expenses 12. It is a form of the Statement of Financial Position that is presented in a 12. horizontal format. a. a. Report form c. Digital form b. b. Account form d. Line form 13. It is a form of the Statement of Financial Position that is presented in a vertical 13. format. a. a. Report form c. Digital form b. b. Account form d. Line form 14. An item is considered current when___________________________________ 14. when__________________________________________? _______? a. a. It is expected to be used or converted c onverted into cash or to be paid for more than one year. b. b. It cannot be converted or realizable into cash within a year. c. c. It is expected to be used or realizable into i nto cash or to be paid within a year. d. d. It has an expected life for more than 12 months 15. A non-current item is _________________________________. 15. _________________________________. a. a. expected to be used/realizable into cash or to be paid for more than one year. b. b. Expected to be converted or realizable into cash cas h within a year. c. c. expected to be used or paid within a year. d. item bought for readily consumption/ c onsumption/ production.
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Lesson
1
Identify the element of the Statement of Financial Position (SFP) and describe each of them
The Statement of Financial Position (SFP), which is also known as the Balance Sheet, shows the financial position of a business entity at a given period or a specified date. Its purpose is to help the financial statement users in the assessment of the financial health and soundness of a business entity in determining its liquidity, financial, credit and business risks. It has three (3) elements: 1. Assets (resources owned and controlled by the business); 2. Liabilities (obligations owed to someone by the business); bu siness); and 3. Equity or Owner’s Equity (residual interest of the owners of the business or what was left of the assets after paying the liabilities is the right of the owners). The assets, aside from the capital investment of the owners, maybe financed from outside sources (like loans from banks and other financial institutions or from other creditors). The total assets should always be equal to the sum of the total liabilities and total equity. Thus, the Accounting Equation is stated as: Assets = Liabilities + Equity.
What’s In
As what you have learned from your Fundamentals of the Accountancy, Business and Management 1 about the types of major accounts (Assets, Liabilities, Equity, Income and Expenses), let us focus on the three major accounts which are also the elements of the SFP or the Balance Sheet. These are the Assets, Liabilities and Equity.
Notes to the Teacher Begin the lesson by letting the students do Activity 1: 1 : “HULA ME”. ME”. Let the student answer the given worksheet which will help them identify and describe the key elements of the SFP. 4
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What’s New
The activity below will help you check how much you know about the key elements of the Statement of Financial Position (SFP).
Activity 1: “HULA ME” ME” Directions: 1. 1. Guess the account title being described in each eac h sentence. 2. 2. Identify what element of SFP (Assets, Liabilities or Equity) it is listed/ included. 3. 3. Write your answers on the columns provided.
1.
2.
3. 4. 5. 6.
7. 8. 9.
10.
Description I am used as a medium of exchange in business
Account title
transactions. I may be held on hand or put in banks for safekeeping. I can be in the form of cash or other assets invested by the owner to start- up a business. I am items held for resale. I am expenses paid in advance. I am expenses incurred but not yet paid. I am amounts due to suppliers for the purchase of goods or services received on account. I am an amount taken by the owner from the business for personal use. I am an account due with supporting promissory notes. I am an account due from customers as a result of sale of goods or for services rendered. I have a long- life and acquired for use in business operations.
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SFP Element
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What is It In Activity 1, you were able to identify and describe some of the account titles and the elements to which it belongs in relation to the Statement of Financial Position (SFP). In this part of the module, you will learn further the preparation of SFP using the report form and the account form with proper classification of items as current and noncurrent.
The Statement of Financial Position (SFP): its classification, its preparation and its form. As mentioned earlier, the Statement of Financial Position (SFP) or the Balance Sheet shows the financial position of a business entity at a given period or a specific date. Following the accounting cycle the SFP and other financial statements (which will be discussed in the succeeding modules) are prepared once the adjusted trial balance is done to come- up with a fair balance sheet statement. Assets, Liabilities and Equity are properly grouped and classified to give a meaningful information. Assets are presented and classified by the order of its liquidity or those that are readily available for use and can easily be converted into cash are listed first and assets that cannot be easily converted into cash are listed last. When it comes to liabilities, maturity matters. Those obligations that are currently due are listed first. The Balance Sheet includes permanent and contra asset accounts. An account is said to be permanent because their balances are carried over from one accounting date to another. The Assets, Liabilities and Equity accounts are permanent accounts. Contra asset accounts are accounts also presented in the SFP as a deduction to a particular asset. These are Allowance for Doubtful Accounts and Accumulated Depreciation. The Allowance for Doubtful Accounts,, a contra- asset for Accounts Receivable, it is an allowance made by the Accounts business for estimated uncollectible accounts. An Accumulated Depreciation is an account that represents depreciation of Fixed Assets (except for Land) due to its usual wear and tear.
Classification of Assets, Liabilities and Equity 1. 1. Assets are divided into current or non- current. Current AssetsAssets- are items that are listed on a business’ business’ statement of financial position that are expected to be used or realized into cash within one accounting period or a year. It usually includes cash, accounts receivable, inventories and prepaid expenses. Cash Cash is considered the most liquid asset because it is readily available for use. It is used as a medium of exchange in business transactions and may be held on hand or put in banks for safekeeping. Accounts Receivables are accounts due from customers as a result of sale of goods or for services rendered that are collectible within one year. Inventories are regarded as a current asset because these are items held for resale because they are readily available (either raw materials or finished goods). Prepaid expenses are considered current assets because they are expenses paid in advance to be consumed within a year. 6
www.shsph.blogspot.com Non- Current AssetsAssets- are items that are listed on a business’ statement of financial position that cannot be used or realized into cash within one accounting period or a year. It includes assets that are long- term in nature like fixed assets, long-term investments and intangibles. Fixed assets includes Property, Plant and Equipment (Furniture, equipment, land, building, vehicles, etc.) that are used acquired for use in operations and have an estimated useful life of more than one year. Long- term investments investments are investments made by the owners of the business for long- term purposes like marketable securities. Intangible assets are assets are non- physical assets like Patents, Copyright and Franchise. Franchise. 2. 2. Liabilities are also divided into current or non- current. Current Liabilities- are liabilities that should be paid and realized within a year after the year- end date. These include Accounts Payable, Notes Payable, Accrued Expenses and Unearned Income. Accounts Payable is Payable is amount due to suppliers for the purchase of goods or services received on account to be paid within a year. Notes Payable Payable is account due with supporting promissory notes with short-term mode of payments. Accrued Expenses are expenses incurred but not yet paid, examples are Salaries Payable, Taxes Payable, etc. Unearned Income is cash collected or given in advance from customers for future delivery of goods or services to be performed. Non- Current Liabilities- Liabilities- are liabilities that are to be paid for more than a year from the year- end date. These include Loans Payable, Mortgage Payable, etc. Loans Payable is account due from third parties which was agreed to be paid for longer terms. Mortgage Payable is account due from third parties with associated collaterals to be paid for longer terms. 3. 3. Equity Equity or Owner’s Equity is the the residual interest of the owners of the business or what was left of the assets after paying the liabilities is the right of the owners. It includes the Capital and Drawing accounts. Capital is the investment made by the owner to start- up a business in the form of cash or other assets. Drawing or withdrawal is withdrawal is an amount taken by the owner from the business for personal use. Steps in preparing a simple Statement of Financial Position (SFP): 1. 1. You should start with a heading. The heading includes the name of the business or entity (ex. JD Gardens), name of the financial statement (ex. Statement of Financial Position) and the reporting date/ period (ex. As of December 31, 2019). We use as of in SFP because the amounts (in Philippine Peso) of the items are cumulative from the start of the operations of the business up to the accounting date. 2. 2. Assets are presented first. These are classified into current and non- current assets. 3. 3. Next is to present the Liabilities. These should also be classified into current and non- current liabilities. 7
www.shsph.blogspot.com 4. 4. Equity/ Owner’s Equity is then added after the liabilities to complete com plete the accounting equation (Assets= Liabilities + Equity).
Dale’s Garden Garden Statement of Financial Position As of December 31, 2019 ASSETS Current Assets Cash Accounts Receivable Garden Supplies and Materials Prepaid Expenses Total Current Assets Non- Current Assets Assets Garden Tools and Equipment Accumulated Depreciation Delivery Vehicle Accumulated Depreciation Land Building Accumulated Depreciation Total Non- Current Assets
PhP
Php
PhP 285,000.00 ( 95,000.00) PhP 500,000.00 ( 62,500.00) 550,000.00 ( 55,000.00)
TOTAL ASSETS
250,000.00 85,000.00 185,000.00 48,000.00 568,000.00
190,000.00 437,500.00 1,500,000.00
495,000.00 PhP 2,622,500.00 PhP 3,190,500.00 ================
LIABILITIES LIABILITIES Current Liabilities Accounts Payable Notes Payable, 1 year Salaries Payable Total Current Liabilities
PhP
PhP
Non-Current Liabilities Notes Payable, 7 years TOTAL LIABILITIES
355,000.00 150,000.00 35,500.00 540,500.00
350,000.00 PhP
890,500.00
OWNER’S EQUITY EQUITY Owner’s Equity Equity D. Ramos, Capital
PhP 2,300,000.00 PhP
TOTAL LIABILITIES AND OWNER’S EQUITY
PhP 3,190,500.00 ================ ================
The illustration is an example of a simple statement of financial position of a single/ sole proprietorship. Other forms of business organizations (partnership and 8
www.shsph.blogspot.com corporation) have different presentation depending on the nature of its business. The total assets must be always equal to the total liabilities and owner’s equity. The total assets, as well as, the total liabilities and equity are double ruled showing that it is the end part of a financial statement. Forms of Statement of Financial Position (SFP) The Statement of Financial Position (SFP) has two forms, the Report form and the Account Form. The format in the preparation of the SFP depends on the preference but most financial users prefer to use the report form because it is easier to read especially when comparing multiple years SFP. Report Form- it is a form of SFP wherein accounts are presented vertically, the Assets first, followed by the Liabilities and then the Equity. The above presented Balance Sheet is an example exam ple of a Report Form SFP. Account Form- it is a form of SFP wherein accounts are presented horizontally, the Assets are presented on the left side while the Liabilities and the Equity are on the right side of the Balance Sheet. It will look like the debit and credit balances of an account. Dale’s Dale’ s Garden Statement of Financial Position As of December 31,2019 ASSETS Current Assets Cash Accounts Receivable Garden Supplies and Materials Prepaid Expenses Total Current Assets
₱250,000.00
85,000.00 185,000.00 48,000.00 ₱568,000.00
Non- Current Assets
Garden Tools and Equipment Accumulated Depreciation Accumulated Delivery Vehicle Accumulated Accumula ted Depreciation Land Building Accumulated Accumula ted Depreciation Total Non- Current Assets TOTAL ASSETS
₱285,000.00
(95,000.00) 500,000.00 (62,500.00)
LIABILITIES AND OWNER’S EQUITY EQUITY Current Liabilities Accounts Payable ₱355,000.00 Notes Payable, 1 year 150,000.00 Salaries payable 35,500.00 Total Current Liabilities ₱540,500.00 Non-Current Liabilities Notes Payable, 7 years Total Non-Current Liabilities
₱350,000.00
Total Liabilities
₱890,500.00
₱350,000.00
₱190,000.00
437,500.00 1,500,000.00
550,000.00 (55,000.00)
495,000.00
Owner's Equity D. Ramos, Capital Total Owner's Equity
₱2,300,000.00
TOTAL LIABILITIES & OWNER'S EQUITY
₱3,190,500.00
₱2,300,000.00
₱
2,622,500.00
₱3,190,500.00
Notes to the Teacher The brief discussion above provided enough information for the students to do the activities on the succeeding pages. Such activities are designed for individual preparation and lesser teacher intervention. 9
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What’s More Activity 2: “LET’S CLASSIFY” CLASSIFY” Directions:: Determine the classification of the following accounts as to ASSET, Directions LIABILITY AND EQUITY. For Asset and Liability accounts, determine also how it is treated as to CURRENT OR NON- CURRENT. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
ACCOUNT TITLE Cash Furniture and Fixtures Land Notes Payable Notes Receivable DSD, Capital Accounts Receivable Vehicle Building Taxes Payable
11. 12. 13. 14. 15.
Mortgage Payable DSD, Drawings Prepaid Rent Utilities Payable Marketable Securities
ACCOUNT CLASSIFICATION
Activity 3: “PRAKTISADO AKO 1” 1” Directions: Prepare a properly classified Statement of Financial Position using the Directions: report form. Mr. Dale Ramos, owned a plant shop named Dale’s Gardens. He hired you to prepare his plants shop’s Statement of Financial Position for the year 2019. The following shows the assets and liabilities of Mr. Ramos: a. His plant shop has cash in bank account amounting to P150,000. b. His plant shop has uncollected sales from customers amounting to P125,000. P125,000. c. The total amount of garden supplies and materials after inventory showed P80,000 on hand. d. He already paid one year’s advertisement advertiseme nt in advance in a local newspaper amounting to P12,000 e. Total value of all the shop’s garden tools and equipment e quipment amounted to P150,000 f. He bought garden supplies and materials on account ac count from his supplier amounting to P155,000 to be paid within three months after the year- end. g. Salaries unpaid to his three employees totaled P21,000.00. h. Utilities amounting to P6,000.00 remained unpaid as of year- end. i. His outstanding loan balance amounted to P45,000 will be paid within 5 years.
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Activity 4: “PRAKTISADO AKO 2” 2” Directions: Using the same data in Activity 3, prepare a properly classified Directions: Statement of Financial Position using the account form.
Notes to the Teacher Activities 2, 3 and 4 are designed to develop and enrich students’ knowledge on the Statement of Financial Position (SFP). The activities ensure that students’ full understanding of the lesson is achieved.
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What I Have Learned At this point, let us see how much you have gained from the discussions and activities you have undergone.
Activity 5: “PROBLEM MO, SOLVE KO” KO” Directions: Analyze the given situations, solve and give the appropriate answers. Directions: Use a separate sheet of paper. 1. Wash and Wear Laundry has current assets amounting to Php 300,000. Noncurrent assets for the year totaled Php 89,000. How much is the laundry’s total assets? 2. Read Me Book Shop has assets of Php 2,000,000.00 2,000,000.00 and owner’s equity of Php 600,000.00. How much is the book shop’s total liabilities? liabilities? 3. No Melt Ice Cream parlor has liabilities of Php 395,000.00 and assets of Php 524,000.00. How much is the ice cream parlor owner’s equity? equity? 4. Everyday Bake Shop has total liabilities amounting to Php 35,000. Total equity had an ending balance of Php 42,000. How much is total assets? 5. Choose Me Boutique Boutique had the following accounts accounts at year end: Cash- PhP250,000, Accounts Payable-PhP70,000, Prepaid Expense-PhP15,000. Compute for the company ’s ’s current assets. assets. 6. A hotel company has owner’s equity of PhP 5,000,000.00 and liabilities of PhP 2,560,000.00. How much is the company’s total assets? assets? 7. At the beginning of the year, the assets of Dale’s Services were PhP 560,000.00 and its Owner’s Equity Equity was PhP 250,000.00. During the year, assets were increased by PhP 120,000.00 and liabilities increased by PhP 20,000.00. What was the owner’s equity at the end of the year? year? 8. Happy Selling’s Accounts Receivable amounted to Php 500,000. Prepaid Expense Expense and Unearned Income totaled Php 30,000 and Php 10,000 respectively. Cash balance amounted to Php 100,000 while Accounts Payable and Inventory totaled to Php 20,000 and Php 10,000 respectively. How much is the company’s current assets? Current liabilities? 9. Company’s Total Liabilities and Equity amounted to Php 285,000. Total noncurrent assets ended at Php 85,000. Cash totaled Php 50,000. Inventory amounted to Php100,000. Assuming the company had no other assets, how much is Accounts Receivable? 10. Total assets amounted to Php575,000. Total equity amounted to Php 250,000. Accounts Payable amounted to Php 50,000 while Unearned Income totaled Php 85,000. Assuming there are no other current liabilities, compute for the company’s noncurrent liabilities.
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What I Can Do This activity will help you transfer into real-life real-life situations the knowledge and skills you have gained or learned from this module. module.
Activity 6: “OWNED and OWED KO” ( Make your own SFP) Direction: 1. 1. On a separate sheet of paper, make a list of your savings (if you have any) and then everything that you personally own (cellphone, clothes, accessories, bags, jewelries, etc.). Make sure to estimate the amounts/ values of what you have listed. 2. 2. Next is to list down what you owed from your parents, other family members and friends. 3. 3. Deduct the amount you owe (liabilities) from the amount of what you own (assets). 4. 4. Determine what was left of you (equity). Guide Questions: 1. 1. What did you feel while doing the activity? 2. 2. Were you able to differentiate what you owned from what you owed? 3. 3. What do you think is the importance of knowing one’s SFP? SFP? 4. 4. Do you think having more assets in a business means that the business is earning?
Rubrics in Rating Activity 4: “OWNED and OWED KO” (Make ( Make your own SFP) Standard
Identifying one’s own assets, liabilities and equity eq uity
5
Comprehensively and clearly answered the guide questions.
4
Satisfactorily and clearly answered the guide questions.
3
Fairly and clearly answered the guide questions.
2
Provided short discussions on the guide questions.
1
Provided a little idea about the guide questions.
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Assessment
Directions: Choose the letter of the best answer and write your answer on a Directions: separate sheet of paper. 1. 1. A non-current item is _________________________________. _________________________________. a. a. expected to be used/realizable into cash or to be paid for more than one year. b. b. expected to be converted or realizable into cash within a year. c. c. expected to be used or paid within a year. d. item bought for readily consumption/ production. 2. 2. An item is considered current c urrent when_______________________________ when__________________________________________? ___________? a. a. It is expected to be used or converted into cash or to be paid for more than one year. b. b. It cannot be converted or realizable into cash within a year. c. c. It is expected to be used or realizable into cash or to be paid within a year. d. d. It has an expected life for more than 12 months 3. 3. It is a form of the Statement of Financial Position that is presented in a vertical format. a. a. Report form c. Digital form b. b. Account form d. Line form 4. 4. It is a form of the Statement of Financial Position that is presented in a horizontal format. a. a. Report form c. Digital form b. b. Account form d. Line form 5. 5. The following are elements of Statement of Financial Position EXCEPT EXCEPT:: a. a. Assets c. Equity b. b. Liabilities d. Expenses 6. 6. In which part of Statement of Financial Position does the Salaries Payable be listed? a. a. Assets c. Owner’s Equity b. b. Liabilities d. Expenses 7. 7. Which of the following is classified as a current asset? a. a. Prepaid Rent c. Investments b. b. Unearned Rent d. Drawings 8. 8. Which of the following is classified as a non-current non-current liability? a. a. Accounts Payable c. Utilities Payable b. b. Mortgage Payable d. Unearned Revenue 9. 9. All of the following are classified as Assets, EXCEPT EXCEPT:: a. a. Accounts Receivable b. b. Inventory
c. Building d. Accounts Payable 14
www.shsph.blogspot.com 10. 10. Which of the following financial statements presents the financial position of an entity at a given or specific date? date ? a. a. Income Statement c. Statement of Changes in Equity b. b. Statement of Financial Position d. Statement of Cash Flows 11. 11.
Which of the following is classified as Current Asset? a. a. Prepaid Expenses c. Delivery Vehicle b. b. Land
12. 12.
d. Copyright
Which of the following is the correct Accounting Equation? a. a. Assets + Liabilities = Equity c. Assets = Liabilities + Equity b. b. Assets = Liabilities - Equity d. Assets + Equity = Liabilities
13. 13. Which of the following pertains to the obligations that the business owed to other entities arising from past events which whi ch are to be settled in the future? a. a. Assets c. Equity b. b. Liabilities d. Resources 14. 14. It is derived from deducting the total liabilities to the total assets of a company. a. a. Assets b. b. Liabilities 15. 15.
c. Equity d. Resources
It pertains to resources which are controlled and owned by the business. a. a. Assets c. Equity b. b. Liabilities d. Resources
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Additional Activities Let us reinforce the skills/knowledge that you have gained from this lesson by doing the next activity.
Activity 7: PROBLEM SOLVING AND ANALYSIS Direction: From these randomly ordered accounts of Josh Trading prepare a properly classified Balance Sheet (in report form). The balances shown are as of 12/31/2019. Sales Returns and Allowances Accumulated Depreciation Merchandise Inventory, December 31, 2019 Sales Merchandise Inventory, January 1, 2019 Purchases Selling Expenses Accounts Payable Purchase Returns and Allowances Cash Office Equipment Withdrawals Sales Discounts Transportation-In General and Administrative Expense Office Supplies Accounts Receivable Notes Payable Prepaid Rent Josh, Capital, Jan. 1, 2019 Purchase Discounts Net Income from operation
PhP
11,000.00 50,000.00 80,000.00 1,050,000.00 100,000.00 400,000.00 190,000.00 100,000.00 2,000.00 50,000.00 220,000.00 50,000.00 29,000.00 10,000.00 200,000.00 30,000.00 220,000.00 200,000.00 100,000.00 200,000.00 8,000.00 200,000.00
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= = = = = = = = = = = = = = = = 0 0 . 0 0 0 , 0 5 6 P h P E O D N A S E I T I L I B A I L L A T O T 0 0 . 0 0 0 , 0 5 3 P h P y t i u q E s ’ r e n w O l a t o T 0 0 . 0 0 0 , 0 0 2 n o i t a r e p o m o r f e m o c n I t e N : d d A
0 0 . 0 0 0 , 0 5 1 ) 0 0 . 0 0 0 , 0 5 ( 0 0 . 0 0 0 , 0 0 2
9 1 0 2 / 1 3 / 2 1 , l a t i p a C , h s o J s l a w a r d h t i W : s s e L P h P 9 1 0 2 / 1 / 1 , l a t i p a C , h s o J y t i u q E s ’ r e n w O
Y T I U Q E S ’ R E N W O 0 0 . 0 0 0 , 0 0 3
P h P
0 0 . 0 0 0 , 0 0 2 0 0 . 0 0 0 , 0 0 1
P h P
S E I T I L I B A I L L A T O T e l b a y a P s e t o N e l b a y a P s t n u o c c A s e i t i l i b a i L t n e r r u C
S E I T I L I B A I L = = = = = = = = = = = = = = = = 0 0 . 0 0 0 , 0 5 6 P h P S T E S S A L A T O T 0 0 . 0 0 0 , 0 7 1 ) 0 0 . 0 0 , 0 5 ( n o i t a i c e r p e D . m u c c A 0 0 . 0 0 0 , 0 2 2 P h P t n e m p u i q E e c i f f O s t e s s A t n e r r u C - n o N 0 0 . 0 0 0 , 0 8 4 0 0 . 0 0 0 , 0 0 1 0 0 . 0 0 0 , 0 3
p h P
s t e s s A t n e r r u C l a t o T t n e R d i a p e r P s e i l p p u S e c f i f O
0 0 . 0 0 0 , 0 8 0 0 . 0 0 0 , 0 2 2 0 0 . 0 0 0 , 0 5
9 1 0 2 , 1 3 / 2 1 , y r o t n e v n I . e s d M e l b a v i e c e R s t n u o c c A P h P h s a C s t e s s A t n e r r u C
s c i r b u R e h t n o d e s a b e b l l i w g n i r o c S . y r a v t h g i m s r e w s n a ’ s t n e d u t S 6 y t i v i t c A
S T E S S A 9 1 0 2 , 1 3 r e b m e c e D f o s A n o i t i s o P l a i c n a n i F f o t n e m e t a t S g n i d a r T h s o J
7 y t i v i t c A
0 0 . 0 0 0 , 0 9 1 . 0 1 0 0 . 0 0 0 , 0 3 . 9 0 0 . 0 0 0 , 0 3 - L C 0 0 . 0 0 0 , 0 4 5 A C . 8
B . 8 A . 7 B . 6 D . 5 B . 4 A . 3 C . 2 A . 1
A . 5 1 C . 4 1 B . 3 1 C . 2 1 A . 1 1 B . 0 1 D . 9
0 0 . 0 0 , 3 3 . 0 0 . 0 0 0 0 , 0 0 4 4 , 2 . 7 6 0 0 . 0 0 0 , 5 6 2 . 5 0 0 . 0 0 0 , 7 7 . 4 0 0 . 0 0 0 , 9 2 1 . 3 0 0 . 0 0 0 , 0 0 4 , 1 . 2 0 0 . 0 0 0 , 9 8 3 P h P . 1
t n e m s s e s s A
” O K E V L O S , O M M E L B O R P “ : 5 y t i v i t c A
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References Ballada, W. Fundamentals of Accountancy, Business and Management 2 Made Easy. Philippines: Easy. Philippines: DomDane Publishers, 2018 De Guzman, A. Fundamentals of Accountancy, Business and Management 2 For Senior High School. Philippines: Lorimar Publishing, Inc., 2018 Monfero, R.P. , et. Al. Teaching Guide for Senior High School: Fundamentals of Accountancy, Business and Management 2. 2. Philippines: Published by Commission on Higher Education (CHED), 2016
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