BASIC EDUCATION DEPARTMENT

SENIOR HIGH SCHOOL

Performance Task in Fundamentals of Accountancy, Business, and Management 2

First Semester, SY 2022-2023

Performance Task: Preparation and Analysis of Financial Statements with an

Accompanying Bank Reconciliation Statement

Performance Standard:
The learner shall be able to prepare and analyze Financial Statements for single
proprietorship form of business engaged in merchandising type of business along with
the supporting schedule for cash which is the Bank Reconciliation Statement.

Transfer Goals:
The learner will be able to:
 make financial statements: the Income Statement and the Balance Sheet;
 analyze the financial position and operating performance of the business by
using the financial ratios as a toll; and
 prepare Bank Reconciliation Statement as a supporting schedule for the Cash
account reported on the Balance Sheet.

Description of the Task:

As the accountant of ABC Trading, you were provided below the trial balance of
Domingo Merchandising to help your boss decide whether to proceed or not on his plan
to invest on Domingo Merchandising. Based on the knowledge that you have in
preparing and analyzing financial statements, you need to prepare the Income
Statement to check the company’s operating performance; and the Balance Sheet, to
determine its financial condition to see how much was the company’s working capital
and if it has good standing in terms of paying its obligations. You were also tasked to
determine the management’s ability to control expenses and to earn a return on the
resources committed to the business, how much debt is used to finance operation and
its efficiency to create value from the use of assets. In addition, you were provided the
bank statement for the month of December and you were tasked to reconcile the cash
balance per book and cash balance per bank as an accompanying report
supplementing the cash balance reported on the Balance Sheet.
 Below is the trial balance of Domingo Merchandising as of December 31, 2018.

Domingo Merchandising
Trial Balance
December 31, 2018
Cash ₱ 150,150
Accounts Receivable 8,931
Inventory, January 1 25,038
Prepaid Insurance 2,808
Equipment 53,040
Accumulated Depreciation - Equipment ₱ 15,912
Accounts Payable 21,973
Domingo, Capital, Jan. 1, 2018 182,536
Domingo, Drawing 2,340
Sales 113,344
Sales Discounts 5,538
Sales Returns and Allowances 4,134
Purchases 56,600
Purchase Discounts 1,061
Purchase Returns and Allowances 1,716
Transportation In 1,474
Rent Expense 4,056
Salary Expense 19,890
Utilities Expense 2,543 -
Totals ₱ 336,542 ₱ 336,542

A physical inventory taken at the close of business on December 31, 2018, showed
inventory on hand of ₱28,470. Total assets at the beginning of the year was ₱221,000.

Below is the bank statement taken from Pilipinas Bank.

Pilipinas Bank
Bank Statement
As of December 31, 2018

Check
No. Withdrawal Deposit Balance
Beg. Bal. 100,000
104 10,000 90,000
101 5,000 85,000
106 25,000 60,000
50,000 110,000
10,000 120,000
103 40,000 80,000
62,400 142,400
105 2,000 140,400
Additional Information:
 There was a check deposited beyond the bank cut-off time on the last banking
day during the month amounting to ₱12,350.
 Check number 102 amounted to ₱2,600 was not yet presented to the bank for
encashment.
 There are no reconciling items on the cash balance per book.

From the above given data, prepare the following:

A. Income Statement (use multiple-step form)
B. Statement of Financial Position (Use report format and with Statement of
Changes in Equity incorporated)
C. Compute the different financial ratios (only those which you can possibly
compute)
D. Bank Reconciliation Statement

GRASPS:
Goal - Assess the overall performance of the business for a given period of time.
Role - As accountants of the business
Audience - Owners of the company, stakeholders
Situation - The results of the analysis can serve as a basis for the owner or
management in making present and future plans or decisions. Furthermore, it can
uncover the strengths and weaknesses of the business. Likewise, it should be able to
determine the measurement levels, namely, liquidity, solvency, stability, and profitability
of the business.
Product - Financial Statements Analysis and Bank Reconciliation Statement
Standards - Generally Accepted Accounting Principles
SCORING RUBRIC

Exceeds Expectations Fails to meet Expectations

Criteria (3) Meets Expectations (2) (1)

1. Income Statement Correct data used without Correct data used with Incorrect or inappropriate data used
any errors minimal errors and with more than three (3) errors
2. Balance Sheet Correct data used without Correct data used with Incorrect or inappropriate data used
any errors minimal errors and with more than three (3) errors

3. Bank Correct data used without Correct data used with Incorrect or inappropriate data used
Reconciliation Statement any errors. minimal errors and with more than three (3) errors

4. Ratio analysis Correct data used without Correct data used with Incorrect or inappropriate data used
any errors, accurate minimal errors (3 at least); for ratio calculation; vague
computation of financial ratios mostly accurate computation knowledge of financial ratios
of financial ratios