Fundamentals of Accounting,

Business and Management 2

Quarter 1-Module 1:
Statement of Financial Position (SFP)

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simple-balance-sheet-example-
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Fundamentals of Accounting, Business and Management 2-Grade 12
Quarter 1-Module 1: Statement of Financial Position

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Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writers: FRANCIA R. SALVINO,SST-III

Editors: GERUEL PENTECOSTES ,MT-2/ DAISY E. ELEN, MT-1
Reviewer: DARCY GUY Y. MAÑEBO, EPS
Illustrator: FRANCIA R. SALVINO,SST-III
Layout Artist: RUBELYN P. MORALES,SST-I

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Fundamentals of Accounting, Business and Management 2-Grade 12
Quarter 1-Module 1: Statement of Financial Position

I. Introduction
Whether you are an accountant, investor, business owner, having some basic knowledge of
accounting statements is necessary. Accounting is the language of business. Even if you are not a
CPA, understanding accounting is helpful as it enables you to understand the numbers behind business
and evaluate the financial health of companies.
(Link: https://tfageeks.com/dev/introduction-to-financial-statements/_)

II. Objectives
At the end of this modules you are
expected to:

 Identify the elements of the SFP and describe each of these items for a single/sole
proprietorship business. (ABM_FABM12-Ia-b-1)
 Prepare an SFP for a single/sole proprietorship business using the report and
account forms. (ABM_FABM12-Ia-b-4)
 Appreciate the importance of SFP using report form and account form

III. Vocabulary List

For better understanding of this module, read and understand the meaning of the
following words and key terms:

 STATEMENT OF FINANCIAL POSITION It is also known as the balance sheet. This

statement includes the amount of the company’s total assets, liabilities, and owner’s equity
which in totality provides the condition of the company on a specific date.
 ASSETS - These are economic resources owned by the business expected for future gain.
They are property and rights of value owned by the business.
 LIABILITIES - These include debts, obligations to pay, and claims of the creditors on the
assets of the business.
 OWNER’S EQUITY OR CAPITAL- This includes the interest of the owners on the business;
claims of the owners on the assets of the business; and the investment of the owner plus or
minus the results of operations. Owner’s equity or capital comes from two main sources—
investment of owners and earnings of the business.
 CONTRA ASSETS – Contra assets are those accounts that are presented under the assets
portion of the SFP but are reductions to the company’s assets. These include Allowance for
Doubtful Accounts and Accumulated Depreciation.

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 Allowance for Doubtful Accounts is a contra asset to Accounts Receivable. This represents
the estimated amount that the company may not be able to collect from delinquent customers.
Accumulated Depreciation is a contra asset to the company’s Property, Plant and
Equipment. This account represents the total amount of depreciation booked against the fixed assets
of the company.
 Current Assets – Assets that can be realized (collected, sold, used up) one year after year-end
date. Examples include Cash, Accounts Receivable, Merchandise Inventory, Prepaid Expense,
etc.
 Current Liabilities – Liabilities that fall due (paid, recognized as revenue) within one year
after yearend date. Examples include Notes Payable, Accounts Payable, Accrued Expenses
(example: Utilities Payable), Unearned Income, etc.
 Noncurrent Assets – Assets that cannot be realized (collected, sold, used up) one year after
yearend date. Examples include Property, Plant and Equipment (equipment, furniture, building,
land), Long Term investments, Intangible Assets etc.
 Noncurrent Liabilities – Liabilities that do not fall due (paid, recognized as revenue) within
one year after year-end date. Examples include Loans Payable, Mortgage Payable, etc.
 Report Form – A form of SFP that shows asset accounts first and then liabilities and owner’s
equity accounts after.
 Account Form – A form of the SFP that shows assets on the left side and liabilities and owner’s
equity on the right side just like the debit and credit balances of an account.

IV. Pre-Test
Instructions: Classify where the account belongs and put a check (/) to the corresponding
column. Copy and answer in your Module book.

Account Current Non Current Non Owner’s

Asset current Liabilities Current Equity
Asset Liabilities
1. Accounts Receivable
2. Building
3. De Jesus, Capital
4. Interest Payable
5. Mortgage Payable

V. Learning Activities

The statement of financial position, often called the balance sheet, is a financial statement that
reports the assets, liabilities, and equity of a company on a given date. In other words, it lists the
resources, obligations, and ownership details of a company on a specific day.

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 (Ref. Accounting Cycle (Module/ppt presentation) MTOT-Albay)

Learning Activity 1. Let Us Identify!

In this activity, your task is to list down 5 things that you can see inside your home and identify
what account titles and element they belong: Assets? Liabilities? Capital/ Owner’s Equity? Put a (/) to
the corresponding columns they belong. Place your answer on the table below and follow the given
example. Copy and answer in your Module book.

Account Asset Liabilities Owner’s Equity

Ex. Flat Screen TV (Equipment) /
1.
2.
3.
4.
5.

When the company has a lot of assets (example: cash, accounts receivable, prepaid expenses),
owners may sometimes think that the company is doing well. There are instances that owners forget
that they might also have a lot of liabilities which may result to their equities having a very small
balance. With the preparation of the SFP, the owner can easily see the assets, liabilities and equity
balances of his/her company which will show exactly the financial position of the company as of a
given point in time.
The report format presents all the accounts vertically. Although both balance sheet formats
are acceptable, the report form is much more popular. As the name implies, the report format looks
more like a traditional report and is used more often in the general-purpose financial statements. Here
is an example of a report form balance sheet.

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 NAME OF COMPANY
STATEMENT OF FINANCIAL POSITION HEADING
AS OF (YEAR-END)

Assets
Current Assets
Cash P _________________
Accounts Receivable _________________
LESS:
Allowance for Doubtful Account _________________
Accrued Income _________________ CURRENT
Inventory _________________ ASSETS
Prepaid Expense _________________
Prepaid Rent _________________
Total Current Assets ( a) P _____________

Noncurrent Assets
Long Term Investment P _________________
Intangible Assets _________________
Property, Plant and Equipment _________________ NON-
Less: Accumulated Depreciation _________________ CURRENT
Total Noncurrent Assets P _________ ASSETS
Total Assets (a+b) P ____________

Liabilities
Current Liabilities
Accounts Payable P _________________
Accrued Expense _________________ CURRENT
Unearned Income _________________ LIABILITIES
Notes Payable _________________
Total Current Liabilities P __________
Noncurrent Liability
Mortgage Payable P _________________ NON CURRENT
Loans Payable _________________ LIABILITIES
Total Noncurrent Liabilities P __________
Total Liabilities (a+b) P ________

Owner’s Equity
Owner’s capital (c)________________ OWNER’S
_ EQUITY
Total Liabilities and Owner’s Equity (a+b Total+c)P _____

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 Learning Activity 2. Let’s Analyze and Identify

This time, your task is to analyze the different elements and identify the different account title
used in the transaction. Prepare a Statement of Financial Position for the company using Report form
for the year ended December 31, 2016.

Problem: At the end of the first month of operations for Juana’s Delivery Service, the business
had the following accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment,
Php36,200 and Cash, Php40,650. On the same date, Juana owed the following creditors: Nena’s Supply
Company, Php12,000 (due in 6 months); Maria’s Equipment, Php9,500 (due after 2 years). Place your
answer using the given format above and use long size bond paper to answer the given problem.

The account form balance sheet is a financial statement format where the assets are reported
on the left side and the liabilities and equity are reported on the right side. The liabilities and owner's
equity are added together and listed on the right.

NAME OF COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF (YEAR-END)

Assets Liabilities and Owner’s Equity

Current Assets Current Liability
Cash P ____________ Accounts Payable P _________
Accounts Receivable Noncurrent Liability
Total Current Assets P ____________ Loans Payable
Noncurrent Assets Total Liabilities P _________
Building Owner’s Equity
Total Noncurrent Assets Total Liabilities and
Owner’s Equity P _________
Total Assets P ____________

Learning Activity 3. Perform and Execute

This time, your task is to Analyze the different elements and identify the different account title
used in the transaction, Prepare a Statement of Financial Position for the company using account form
for the year ended December 31, 2016.
Problem: At the end of the first month of operations for Juana’s Delivery Service, the business
had the following accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment,
Php36,200 and Cash, Php40,650. On the same date, Juana owed the following creditors: Nena’s Supply
Company, Php12,000 (due in 6 months); Maria’s Equipment, Php9,500 (due after 2 years). Place your
answer on the given format above in a long size bond paper to answer the given problem.

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Did You Know?

Financial statements are the means by which companies communicate their

story. Together these statements represent the profitability and financial strength of a
company. The financial statement that reflects a company’s profitability is the income
statement. The statement of owner’s equity—also called the statement of retained
earnings—shows the change in retained earnings between the beginning and end of a
period (e.g., a month or a year). The balance sheet reflects a company’s solvency and
financial position. The statement of cash flows shows the cash inflows and outflows for
a company during a period of time.

Link:https://courses.lumenlearning.com/wmopen-introbusiness/chapter/financial-
statements/

What is Statement of Financial Position

STATEMENT OF FINANCIAL POSITION
also known as the balance sheet. This statement
includes the amount of the company’s total
assets, liabilities, and owner’s equity which in
totality provides the condition of the company on
a specific date.

Link: https://images.app.goo.gl/HoF52GXCxFQAMQhR8

PERMANENT ACCOUNTS these accounts are

permanent in a sense that their balances remain
intact from one accounting period to another.
(Haddock, Price, & Farina, 2012. Example of
permanent account include Cash, Accounts
Receivable, Accounts Payable, Loans Payable and
Capital among others. Basically, assets, liabilities
Link: https://images.app.goo.gl/vfnSt8d3MH9MmD2q9 and equity accounts are permanent accounts. They
are called permanent accounts because the
balances become zero. This is in contrast with
temporary accounts which are found in the
Statement of Comprehensive Income (SCI).
Temporary accounts unlike permanent accounts
will have zero balances at the end of the
accounting period.

Link: https://images.app.goo.gl/KEpE6UxDvVS5tHM39

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 CONTRA ASSETS are those accounts that are
presented under the assets portion of the SFP but
are reductions to the company’s assets. These
include Allowance for Doubtful Accounts and
Accumulated Depreciation. Allowance for
Doubtful Accounts is a contra asset to Accounts
Receivable. This represents the estimated
amount that the company may not be able to
collect from delinquent customers. Accumulated
Depreciation is a contra asset to the company’s
Property, Plant and Equipment.
Link: https://images.app.goo.gl/fr2Tp5PvMyiyE8uMA

Note: Learners can visit youtube.com and view this link:

https://www.youtube.com/watch?v=mhmaHayMha8 for reference. If the learners does not have
internet they may proceed to the next topic.

Difference between the Report Form and Account Form

Report Form is a form of the SFP that

shows asset accounts first and then
liabilities and then liabilities and owner’s
equity accounts after.

Account Form is a form of the SFP that

shows on the left side and liabilities and
owner’s equity on the right side just like the
debit and credit balances of an account.

a. Emphasize that the two are only

formats and will yield the same amount of
total assets, liabilities and equity
Link:https://images.app.goo.gl/CmjW9VAdv8GKq5Dq7
b. Emphasize that assets should always
be equal to liabilities and equity.

There are two ways in preparing SFP such

as (1) Account Form and (2) Report Form. There are importance of using different format such as:
a. Report form vs Account form – These are just formats and usually depend on the reader for
preference.
b. Report form is the normal format for those not familiar with accounting. Account form easily
shows that the SFP is balanced and separates assets from liabilities and equities.
c. Separation of the current and noncurrent – current liabilities are upcoming liabilities and the
company should be prepared to pay them.

Note:

c. Using “as of” the amounts in the SFP are permanent meaning that the amounts are cumulative
from the beginning of the life of the company.
d. Rules on single/sole rule and double rule: When there is an operation (addition, subtraction),
single/sole rule. Total assets is double ruled and total liabilities and equity is double ruled
because they represent the end of a part of the financial statement.

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 VI. Practice Tasks
Show that you have learned something by doing this activity.

Practice Task 1. Fill Me In

Instructions: Classify where the account belongs. Analyze the different transaction using the SFP and
compute the given problem. Using the formula: A=L+OE; Copy and place your answer in your module
book.
1. Learning is Fun Company had current assets amounting to Php 100,000. Noncurrent assets for the
year totaled Php 76,000. How much is the company’s total assets?
2. Happy Selling Company’s total liabilities amounted Php 10,000. Total equity had an ending balance
of Php 20,000. How much is the 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. If assets are Php56,000 and owner's equity is Php27,000, liabilities are ___________________.
5. At the end of the first month of operations for Cianar Service, the business had the following accounts:
Accounts Receivable, Php10,200; Prepaid Insurance, Php1,500; Equipment, Php45,200 and Cash,
Php80,900. On the same date, cianar owed the following creditors: Tony’s Supply Company,
Php43,500; Sara’s Equipment, Php15,700. The current assets for the cianar’s Delivery Service are
_________.

Practice Task 2. “Think and Act”

Instruction: Prepare a Statement of Financial Position using the report form. Analyze the
different elements of the following account and Prepare a Statement of Financial Position for the
company using account form for the year ended December 31, 2016. Copy the given format above and
write your answer on a long size bond paper.
Cash – 5,000
Loans Payable – 77,500
Accounts Receivable – 2,600
Supplies – 2,300
Equipment – 17,000
Owner’s equity – 40,000
Accounts Payable – 22,400
Building – 113,000
(TG pp.16)
Learners can use any business name and the end of the current year for the heading

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 CIANAR’S MERCHANDISE
STATEMENT OF FINANCIAL POSITION
AS OF December 31, 2016

Assets
Current Assets

Total Current Assets

Total Noncurrent Assets

Total Assets
Liabilities
Current Liability

Noncurrent Liability

Total Liabilities
Owner’s Equity

Total Liabilities and

Owner’s Equity

Practice
Practice Task
Task 3. Interpret Me”
2. “Interpret me

Instructions. Prepare a Statement of Financial Position for the company (one in report form and the
other group in account form) – Teacher will create virtual grouping to facilitate learning. The students
can choose what appropriate online meeting modality they can use for their brainstorming. Each group
will select a leader, secretary and reporter to present their output either powerpoint or spreadsheet
presentation via online meeting.
Group 1 & 2 – Report form
Group 3 & 4 – Account Form

Problem: You were hired by Ms. Ode Na to prepare his atbp store’s Statement of Financial Position.
In order to prepare the statement, Analyze transaction and identified the following assets and liabilities
of Ms. Sen Sun Sue:
a. Her Atbp Store has cash deposited in a bank account amounting to P580,000.
b. Her Atbp Store had a lot of uncollected sales from customers amounting to P150,000.
c. The total amount of Atbp Store left inside the store is P70,000.
d. She already paid six month rent in advance amounting to P15,000.
e. The value of all the company’s equipment amounted to P350,000.
f. She bought merchandise from his supplier amounting to P120,000 and the supplier agreed that
payment can be made 3 months after year-end.
g. SSS, Philhealth and Pag-ibig Payables for her three employee totaled P8,000.
h. The Atbp Store had outstanding liabilities to staff companies amounting to P10,000.
i. She had a loan from the bank amounting to P200,000 to be paid in 3 years.

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Note: If the learners has no internet access they may choose only one(1) form to answer the given
problem. Copy and place your answer on a long size bond paper.

Rubrics

Score Content Format

5  Presented  Used proper
accurate format of account and
information/answers report form and applied
precisely the rules in
F.S preparation
3  Provide only 2-  Some parts of
4 accurate the presentation are
information/answers inaccurate and/or
erroneous.

VII. Post Test

Directions:

I. Identify the column where each account belongs. Put a check ( / ) to each corresponding column
of account. Copy and Answer in your Long size bond paper following the given format.

Account Current Noncurrent Current Noncurrent

Asset Asset Liabilities Liabilities

1. Unearned Income
2. Prepaid Rent
3. Property, Plant,
and Equipment
4. Mortgage Payable

II. Ask Learners to prepare the Statement of Financial Position either on Report Form or Account
Form and classify the account into current and non-current accounts by using SFP elements. (6 pts.)
Place your answer on a long size bond paper and copy the given format above.

Onivlas Company
Statement of Financial Position
As of December 31, 2016

Cash 100,000.00
Inventory 155.200.00
Prepaid Expense 65,800.00
Property, plant, and equipment 750,000.00
Accumulated depreciation (120,000.00)
Accrued expense 29,600.00

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Long-term payable 300,000.00
Onivlas, capital 621,400.00

Rubrics:
Score Content Format
5  Presented accurate  Used proper format of
information/answers account and report form and
applied precisely the rules in
F.S preparation
3  Provide only 2-4  Some parts of the
accurate information/answers presentation are inaccurate
and/or erroneous.

III. Guide Question:

a. What are the elements of the SFP and describe each of these items for a single/sole
proprietorship business
b. What is the Difference between the Account Form and Report Forms?
c. What is the importance of using different formats of SFP?

VIII. Assignment/Additional Activities

Instruction: Prepare the Statement of Financial Position using Report Form or Account Form. Classify
the account as current or non-current accounts into different elements of SFP. Please follow the given
format above. Copy and place your answer on a module book.

Cianar Company
Statement of Financial Position
As of December 31, 2016

Cash 90,000.00
Accounts receivable 58,000.00
Note receivable 252,000.00
Inventory 160.500.00
Prepaid Expense 70,500.00
Property, plant, and equipment 650,000.00
Accumulated depreciation (120,000.00)
Intangible assets 250,600.00
Accounts Payable 80,000.00
Notes payable 110,000.00
Accrued expense 38,000.00
Unearned income 19,500.00
Long-term payable 600,000.00
Cianar, capital 564,100.00

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Rubrics:
Score Content Format
5  Presented accurate  Used proper format of
information/answers account and report form and
applied precisely the rules in
F.S preparation
3  Provide only 2-4  Some parts of the
accurate information/answers presentation are inaccurate
and/or erroneous.

IX. Answer Key

IV. Pre-Test
Account Current Non Current Non Owner’s
Asset current Liabilities Current Equity
Asset Liabilities
1. Accounts Receivable /
2. Building /
3. De Jesus, Capital /
4. Interest Payable /
5. Mortgage Payable /

V. Learning Activities

Learning Task 1

Account Asset Liabilities Owner’s Equity

Ex. Flat Screen TV (Equipment) /
1. Mortgage Loan of House and /
Lot (Mortgage Loan)
2. Invested Php100,000.00 to sari- /
sari store. (Capital)
3. Saving Deposit Php 20,000 /
(Capital)
4.Tricycle (Equipment) /
5. Jewelries and other appliances /

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 Learning Task 2

JUANA’S DELIVERY SERVICE

STATEMENT OF FINANCIAL POSITION
AS OF (YEAR-END)
Assets
Current Assets
Cash P 40,650.00
Accounts Receivable 1,200.00
Prepaid Rent 500.00
Total Current Assets (a) P 42,350.00
Noncurrent Assets
Furniture P 36,200.00
Total Noncurrent Assets ( b) P 36,200.00
Total Assets (a+b) P 78,550.00

Liabilities
Current Liabilities
Accounts Payable P 12,000.00
Total Current Liabilities (a) P 12,000.00
Noncurrent Liability
Accts Payable-equip. P 9,500.00
Total Noncurrent Liabilities (b) P 9,500.00
Total Current Liabilities (a + b) P 21,500.00
Owner’s Equity
Owner’s capital ( c) 57,050.00
Total Liabilities and Owner’s Equity ((a+b ans) + c)P 78,550.00

Learning Task 3

JUANA’S DELIVERY SERVICE

STATEMENT OF FINANCIAL POSITION
AS OF December 31, 2016

Assets Liabilities and Owner’s Equity

Current Assets Current Liabilities
Cash P 40,650.00 Accounts Payable P12,000.00
Accounts Receivable 1,200.00

Prepaid Rent 500.00 Total Current

Liabilities P12,000.00
Total Current Assets P 42,350.00 Noncurrent Liability
Noncurrent Assets Accts Payable-equip. 9,500.00
Furniture P 36,200.00 __________

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 ___________ Total Liabilities P 21,500.00
Total Assets P 78,550.00 Owner’s Equity 57,050.00
Total Liabilities and ___________
Owner’s Equity P 78,550.00

VI. Practice Tasks

Practice Task 1 Fill Me In

1. P176,000 3. P265,000 5. Php92,600

2. P 30,000 4. Php 29,000

Practice Task 2 “Think and Act”

____________________________
(NAME OF COMPANY)
STATEMENT OF FINANCIAL POSITION
AS OF __________________(YEAR-END)

Assets
Current Assets
Cash P 5,000.00
Accounts Receivable 2,600.00
Supplies 2,300.00
Total Current Assets P 9,900.00
Noncurrent Assets
Building 113,000.00
Total Noncurrent Assets P 130,000.00
Total Assets P 139,900.00
Liabilities
Current Liability
Accounts Payable P 22,400.00
Noncurrent Liability
Loans Payable 77,500.00
Total Liabilities P 99,900.00
Owner’s Equity
Owner’s Equity 40,000.00
Total Liabilities and P 139,900.00
Owner’s Equity

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Practice Task 3 Interpret me
Report Form

NAME OF COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF (YEAR-END)

Assets
Current Assets
Cash P 580,000.00
Accounts Receivable 150,000.00
Merchandise Inventory 70,000.00
Prepaid Rent 15,000.00
Total Current Assets P 815,000.00
Noncurrent Assets
Equipment 350,000.00
Total Assets P1,165,000.00
Liabilities
Current Liability
Accounts Payable P 120,000.00
Salaries Payable 10,000.00
SSS, PhilHealth & Pag-ibig Payables 8,000.00
Total Current Liability P 138,000.00
Noncurrent Liability
Loans Payable 200,000.00
Total Liabilities P 476,000.00
Owner’s Equity
Owner’s Equity 689,000.00
Total Liabilities and Owner’s Equity P 1,165,000.00

Account Form

NAME OF COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF (YEAR-END)

Assets Liabilities and Owner’s Equity

Current Assets Current Liabilities
Cash P580,000.00 Accounts Payable P 120,000.00
Accounts Receivable 150,000.00 Salaries Payable 10,000.00
Merchandise Inventory 70,000.00 SSS, PhilHealth &
Pag-ibig Payables 8,000.00

Prepaid Rent 15,000.00 Total Current Liabilities P 138,000.00

Total Current Assets P815,000.00 Noncurrent Liability
Noncurrent Assets Loans Payable 200,000.00
Equipment 350,000.00 Total Liabilities P 476,000.00

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 Total Assets P1,165,000.00 Owner’s Equity 689,000.00
Total Liabilities and
Owner’s Equity P1,165,000.00

VII. Post Test

I.
Account Current Noncurrent Current Noncurrent
Asset Asset Liabilities Liabilities
1. Unearned Income /
2. Prepaid Rent /
3. Property, Plant, and Equipment /
4. Mortgage Payable /

II.6pts. Report Form

Onivlas Company
STATEMENT OF FINANCIAL POSITION (6)
AS OF December 31, 2016

Assets
Current Assets
Cash P 100,000.00
Inventory 155.200.00
Prepaid Expense 65,800.00
Total Current Assets (1) P 321,000.00
Noncurrent Assets
Property, plant, and equipment 750,000.00
Accumulated depreciation (120,000.00)
Total Noncurrent Assets (2) P 630,000.00
Total Assets (3) P 951,000.00
Liabilities
Current Liability
Accrued expense 29,600.00
Noncurrent Liability
Long-term Payable 300,000.00
Total Liabilities (4) P 329,600.00
Owner’s Equity
Owner’s Equity 621,400.00
Total Liabilities and Owner’s Equity (5) P 951,000.00

Account Form
Onivlas Company
STATEMENT OF FINANCIAL POSITION (6)
AS OF December 31, 2016
Assets Liabilities and Owner’s Equity
Current Assets Current Liability

18
Cash P 100,000.00 Accrued expense 29,600.00
Inventory 155.200.00 Noncurrent Liability
Prepaid Expense 65,800.00 Long-term Payable 300,000.00
Total Current Assets (1) P 321,000.00 Total Liabilities (4) P 329,600.00
Noncurrent Assets Owner’s Equity 621,400.00
Property, plant, and Total Liabilities and
equipment 750,000.00 Owner’s Equity (5) P 951,000.00
Accumulated
depreciation (120,000.00)
Total Noncurrent
Assets (2) P 630,000.00
Total Assets (3) P 951,000.00

VIII. Assignment/Additional Activities

Cianar Company
Statement of Financial Position (2pts)
As of December 31, 2016

Assets
Current Assets
Cash P 90,000.00
Accounts receivable 58,000.00
Note receivable 252,000.00
Inventory 160,500.00
Prepaid Expense 70,500.00
Total Current Assets (1pt) P 631,000.00
Noncurrent Assets
Property, plant, and equipment P 650,000.00
Accumulated depreciation (120,000.00)
Intangible assets 250,600.00
Total Noncurrent Assets (1pt) P 1,020,600.00
Total Assets (1pt.) P 1,411,600.00
Liabilities
Current Liabilities
Accounts Payable P 80,000.00
Notes payable 110,000.00
Accrued expense 38,000.00
Unearned income 19,500.00
Total current liabilities (1pt.) P 247,500.00
Noncurrent Liability
Long-term payable (1pt.) 600,000.00
Total liabilities (1pt.) P 847,500.00
Owner’s Equity
Owner’s capital

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 Cianar, capital (1pt.) 564,100.00
Total Liabilities and Owner’s (1pt.) P 1411,600.00
Equity

References:

a. https://www.google.com.ph/url?sa=i&url=https://revision.co.zw/cambridge-sole-trader-
simple-balance-sheet-example-
2/&psig=AOvVaw0iyMonzGZLiFMsEpNnQ51L&ust=1592646970600000&source=images&cd
=vfe&ved=0CAIQjRxqFwoTCLiN-OTOjeoCFQAAAAAdAAAAABAD
b. https://tfageeks.com/dev/introduction-to-financial-statements/
c. Patricia B. Licuanan, Ph.D., Teaching Guide for Senior High School-Fundamentals of
Accounting, Business and Management 2, Published by the Commisiion on Higher Education,
2016, K to 12 Transition Program Management Unit, 4th floor, Commission on Higher
Education, C.P. Garcia Ave. Diliman, Quezon City. E-mail Address: k12@ched.gov.ph
d. Haddock, M., Price, J., & Farina, M. (2012). College Accounting: A Contemporary Approach,
Second Edition. New York: McGraw-Hill/Irwin.
e. Valencia, E.G., & Roxas, G.F. (2010). Basic Accounting (3 rd ed.). Mandaluyong City,
Philippines: Valencia Educational Supply.
f. Accounting Cycle (Module/ppt presentation) MTOT-Albay)
g. (Ref. FABM-2-Rex edition)
h. (Ref. DLP of FABM-2)
i. https://courses.lumenlearning.com/wmopen-introbusiness/chapter/financial-statements/
j. https://images.app.goo.gl/HoF52GXCxFQAMQhR8
k. https://images.app.goo.gl/vfnSt8d3MH9MmD2q9
l. https://images.app.goo.gl/KEpE6UxDvVS5tHM39
m. https://images.app.goo.gl/fr2Tp5PvMyiyE8uMA
n. https://images.app.goo.gl/CmjW9VAdv8GKq5Dq7

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