Professional Documents
Culture Documents
1st Quarter Week 1 - Statement of Financial Position
1st Quarter Week 1 - Statement of Financial Position
• Assets
• Liabilities
• Owner’s Equity
The SFP or Balance Sheet contains the
following:
A. Heading
1. Name of the Business
2. Title of the Report
3. Date of the Report (Specific date)
4. Currency
B. The Asset Section
C. The Liability Section
D. The Owner’s Equity Section
Components of the Accounting Equation
•ALOE
Accounting Equation
Assets = Liabilities + OE
or
Assets – Liabilities = OE
Rules of Debits and Credits
Normal Balances
• Current assets
• Non-current Assets
• Current Liabilities
• Non-current Liabilities
• Owner’s Equity
Two form of Financial Position
Assets
Total Assets Pxxx
Liabilities Pxxx
Owner’s Equity Pxxx
Total Liabilities
And Owner’s Equity Pxxx
2. Account Form (Horizontal Form)
Assets Liabilities
Owner’s Equity
Total Liabilities
Total Assets Pxxx and Owner’s Equity Pxxx
Angel Service Company
Statement of Finacial Position
December 31, 2001
Assets
Current Assets
Cash on Hand and in Banks P 52,000
Accounts Receivable (net of P15,000 allowance for bad debts) 590,000
Noncurrent Assets
Equipment 2,800,000
Less: Accumulated Depreciation 150,000
Net Equipment 2,650,000
Total Assets P 3,463,000
Noncurrent Liabilities
Loans Payable 138,000
Total Liabilities 1,338,000
Owner's Equity
Angel Reyes, Capital 2,135,000
Total Liabilities and Owner's Equity P3,473,000
Angel Service Company
Statement of Finacial Position
December 31, 2001