LESSON 1

Statement of
Financial Position
Ms. Roveinna S. Salting
Balancing Act
 Mechanics
Get a 1/4 piece of paper.
Write your current savings and everything
that you own (clothes, pen, pencil, etc.)
Write the amount that you owe your
friends, family members, parents (tuition)
Deduct the amount you owe from the
amount you own.
CHECKPOINT
 QUESTIONS

What is the difference between the assets

and liabilities?
 QUESTIONS

What is the difference between the assets

and liabilities?

Do you think that having more assets

mean that the business is earning?
LESSON 1

Statement of
Financial Position
Ms. Roveinna S. Salting
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
Headless Hunt
WORD HUNT
 ELEMENTS OF SFP

Assets

Liabilities

Equity
Assets
An asset is anything that has current or
future economic value to a business.
Liabilities
A liability is an obligation of a company
that results in the company's future
sacrifices of economic benefits to
other entities or businesses.
Equity
Equity is the amount of money that a
company's owner has put into it or
owns.
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
Sorting Hat
 Mechanics
Set of account titles will be flashed on the
screen.
The student's task is to simply classify
what element will each accounts fall to.
The students have to write their answer
on the column on the board.
 account titles
Land Allowance for Doubtful Accounts

Accounts Receivable Owner's Capital Cash

Bonds Payable Owner's Capital Building

Furniture & Fixtures Unused Office Supplies

Accumulated Depreciation Utilities Payable

 QUESTIONS

How do you distinguish current from

noncurrent from contra?
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
This is a sample of
a Statement of
Financial Position.
What are the
parts you are to
consider then
upon creating
one?
Report Form
A report form balance sheet is a
balance sheet that presents asset,
liability, and equity accounts in a
vertical format.
REPORT
FORM
FORM
REPORT
Account Form
The account form refers to a two-
column format for the presentation of
the balance sheet.
ACCOUNT
FORM
FORM
ACCOUNT
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
 OBJECTIVES
Identify the elements of the SFP and
describe each of them

Classify the elements of the SFP into

current and noncurrent items

Prepare the SFP of a single/sole

proprietorship
The following
information
pertaining to the
year-end
adjustments is
available:
1. The P3,600 prepaid advertising represents
expenditure made on Nov. 1, 2015 for monthly
advertising over the next 18 months.

2. A count of the engineering supplies at May

31, 2016 amounted to P90,000.

3. Depreciation on the surveying equipment

amounted to P160,000.
4. One-third of the unearned survey
revenues has been earned at year-end.

5. At year-end, salaries in the amount of

P140,000 have accrued.

6. Interest of P60,000 on the notes payable

has accrued at year-end.
Work on with the adjustments and
create a statement of financial
position.