1

STATEMENT OF
FINANCIAL POSITION
LEARNING COMPETENCIES
THE LEARNERS SHOULD BE ABLE TO:
• IDENTIFY THE ELEMENTS OF THE SFP AND DESCRIBE EACH
OF THEM
• CLASSIFY THE ELEMENTS OF THE SFP INTO CURRENT AND
NONCURRENT ITEMS
• PREPARE AN SFP OF A SINGLE/SOLE PROPRIETORSHIP
USING THE REPORT FORM AND THE ACCOUNT FORM WITH
PROPER
Statement of Financial Position

• Also known as the balance sheet. This statement

includes the amounts of the company’s total assets,
liabilities, and owner’s equity which in totality provides
the financial condition of a company as of a given
date.
• Investors creditors and other statement users analyze
the statement of financial position to evaluate such
factors as liquidity, solvency and the need of the entity
for additional financing.
 ELEMENTS OF THE STATEMENT OF
FINANCIAL POSITION ( SFP )
ASSETS
Current Assets
Cash and Cash Equivalents
Financial Assets at Fair Value
Trade and other receivables
Inventories
Prepaid Expenses
Non-current Assets
Property, Plant, Equipment
Long-term Investments
Intangible Assets
Deferred Tax Assets
Other Non-Current Assets
LIABILILITIES EQUITY
Current Liabilities
Trade and Other Payables Capital Stock
Current Provisions Subscribe capital stock
Short-term Borrowings Preferred stock
Current Portion of a long-term debt Common Stock
Current tax liability Additional Paid-in capital
Retained earnings (deficit)
Non- Current Liabilities Retained earnings appropriated
Non-Current portion of long-term debt Revaluation Surplus
Finance Leese Liability Treasury Stock
Deferred tax liability
Long-term obligations to firm officers
Long-term deferred revenue
 ABM Company NOTES TO FINANCIAL STATEMENT
Statement of Financial Position
December 31, 2018 Note 1 - Cash and Cash equivalents
Cash on hand 40,000
Cash in bank 300,000
ASSETS Petty Cash Fund 10,000
Note BSP Treasury Bill 150,000
Current Assets: Total Cash and Cash Equivalents 500,000
Cash and Cash Equivalents (1) 500,000
Short-term Investments 200,000 Note 2 - Trade and Other Receivables
Account Receivables 580,000
Trade and other Receivables (2) 700,000 Allowance for doubtful Accounts (20,000)
Inventories (3) 900,000 Notes Receivable 100,000
Prepaid Expenses (4) 50,000 Accrued Interest on Notes Receivable 10,000
Advances to Employees, 30,000

Total Current Assets 2,350,000 Total Trade and Other Receivables 700,000

Note 3 - Inventories
Non-Current Assets: Finished Goods 300,000
Property, plant and equipment (5) 5,000,000 Goods in Process 400,000
Investment in associate, at equity 1,000,000 Raw Materials 150,000
Manufacturing supplies 50,000
Long Term Investment (6) 5,100,000
Intangible Assets (7) 2,000,000 Total Inventories 900,000
Other Non-Current Assets (8) 100,000
Note 4 - Prepaid Expenses
Office Supplies unused 30,000
Total Non-Current Assets 13,200,000 Prepaid Insurance 20,000

Total Prepaid Expenses 50,000

Total Assets 15,550,000
=========
A. Report Form
this form set forth the three major sections in a
downward sequence of assets, liabilities and equity.

B. Account Form
As the title suggest, the presentation follows that of
an account, meaning the assets are shown on the left
side and the liabilities and equity on the right side of the
statement of financial position.
REPORT FORM
A. De Guzman
Statement of Financial Position
As of December 31, 2019

ASSETS
Current Assets
Cash P 215,000
Accounts Receivable 85,000
Prepaid Expenses 35,000 355,000
Non-Current Assets
Delivery Equipment P 450,000
Accumulated Depreciation ( 7,500) 442,500
TOTAL ASSETS P 777,800
LIABILITIES
Current Liabilities
Accounts Payable P 55,000
Notes Payable 50,000
Taxes Payable 12,000 117,000
Non-current Liabilities
Loans Payable (5 years to pay) P 450,000 450,000
Total Liabilities P 567,000
OWNER’S EQUITY
A. De Guzman Capital 210,800

TOTAL LIABILITIES AND OWNER’S EQUITY P 777,8000

 ACCOUNT FORM
A. De Guzman
Statement of Financial Position
As of December 31, 2019
ASSETS LIABILITIES AND OWNER’S EQUITY
Current Assets Current Liabilities
Cash P 215,000 Accounts Payable P 55,000
Accounts Receivable 85,000 Notes Payable 50,000
Prepaid Expenses35,000 Taxes Payable 12,000
Total Current Assets P 355,000 Total Current Liabilities P 117,000

Non-Current Assets Non-current Liabilities

Delivery Equipment P 450,000 Loans Payable(5 years) 450,000
Accumulated Dep. (7,500) Total Liabilities P 567,000
Total Non- Current Assets. P 442,500 Owner’s Equity
A. De Guzman Capital P 210,800
TOTAL ASSETS P 777,800
TOTAL LIABILITIES AND OWNER’S EQUITY P 777,8000
 The December 31, 2019 statement of financial position of N. Esguerra is
shown below.

Taxes Payable 80,000

Supplies 5,000
Salaries Payable 20,000
Notes Payable (due in 2019) 200,000
N. Esguerra 366,000
Inventory 150,000
Equipment 600,000
Cash and Cash Equivalents 65,000
Allowance for bad debts 8,000
Accumulated Depreciation-Equipment 25,000
Accounts Receivable 115,000
Accounts Payable 236,000

Requirement: Prepare the Statement of Financial Position as of December 31,

2019 for N. Esguerra using:
A. Account Form
B. Report Form
The December 31, 2020 statement of financial position of
Maestro is shown below.
Maestro Capital 1,470,000
Accrued Expenses 100,000
Long Term Investments 1,250,000
Property Plant and Equipment 1,000,000 Prepare the
Accumulated Depreciation 300,000 Statement of Financial
Accounts Receivable 500,000 Position as of
Cash 100,000 December 31, 2020 for
Inventory 200,000 Maestro using:
Mortgage Payable 500,000 A. Account Form
B. Report Form
Prepaid Expenses 50,000
Loans Payable (3years) 1,000,000
Notes Payable 150,000
Allowance for doubtful accounts 50,000
Accrued Income 300,000
Accounts Payable 250,000
Intangible Assets 500,000
Unearned Income 80,000