Jay Adrian M. Lozano Oct.

15, 2020

G-12 Bezos Mr. Algerre

What I Know
As a prerequisite to FABM2 is FABM1. You must recall through your stock knowledge the
Elements of Financial Statements. The basic purpose of accounting is to provide information
that is useful for making economic decision Accounting information is most commonly
communicated to users of accounting information through the financial statements.

Instruction: Fill in the blank with the correct answer (Critical Thinking, Communication and
Collaboration)

Journal ___________1. The book of original entry.

Accounting equating 2. Assets are equal to liabilities and owner’s equity.

Financial Statement 3. Users of accounting information is mostly communicated

Assets____________ 4. Are what the company owns.

. Liabilities _________ 5. Are what the company owed.

Income____________ 6. Inflows of cash because of services rendered.

Expenses__________ 7. Assets from cash spent because of sales of goods.

Journalizing ________ 8. The second accounting cycle.

Ledger_____________9. Is called the book of the final entry.

Posting to ledger____ 10. Is the next cycle after journalizing.

Instructions: Write True if the statement is correct and False if the statement is incorrect
(Collaboration)

True 1. The left side of the account is Debit

False 2. The permanent accounts are the nominal account.

True 3. The right side of the account is credit.

False 4. The elements of the statement of financial position are Assets and expenses.

True 5. Current Assets are easily convertible into cash within the normal operating cycle
of the business

True 6. The elements of Statement of financial position are Assets, Liabilities and Owner’s
Equity account.

True 7. Kinds of Assets are Current Assets and Non-Current Assets

True 8. Kinds of Liabilities are Current Liabilities and Non-Current Liabilities

True 9. Under owner’s Equity Account includes Capital, Owner’s withdrawal, Revenue and
Expenses.

True 10. Account form and Report form are the two kinds of forms of the Statement of
Financial Position

Independent Activity 1.1: My Family’s Financial Posit (Critical - Thinking,

Creativity, Character and Collaboration)

Instructions: Cut out pictures from magazines or you can take a picture or draw all your family’s
assets, I want you to identify all the liabilities, and the owner’s equity account. Make a
reflection of what your family need to do in order to make the Financial Position more
attractive.
 MY FAMILY ASSETS MY FAMILY LIABILITY

My Family Owner Equity

My Family need to do in order to make this financial position more attractive is to budget
our asset while there is no work yet. Our family business must be open on November 3 so that
our inventory will convert into cash and so that way can pay in our payables. These pictures can
be reflected of what the stuff we own and we owes. I am still hoping that this family financial
position number will grow and still hoping that the pandemic will stop. Lastly I’ve learned that
to make this financial position attractive is to budget it and find new business that can we sell
during this pandemic.
What’s New
If you can answer scramble words, you can answer the questions given below

1. What are the two forms of 1. ACCOUNT REPORT

Statement of Financial Position?

2. What are the kinds of Assets ?

2. CURRENT ASSET

NON CURRENT
3. What are the kinds of Liabilities? 3. CURRENT LIABILITIES

LONG TERM LIABILITIES

What’s More
Independent Activity 1.1 (Critical Thinking and Communication)

This time, I want you class to do the following task alone. Make sure to answer them correctly.

Instructions: Choose the answer that corresponds for each of the question provided below:
Write letter only of the best letter.

1. Information about the revenue and expenses is provided by

a. Statement of changes in equity b. Statement of Cash Flow

c. Statement of Financial position d. Statement of performance

2. Information on changes in Assets, Liabilities and Owners Equity account

a. Statement of changes in equity b. Statement of Cash Flow

c. Statement of Financial position d. Statement of performance

3. Cash, Cash Equivalents, merchandise inventory are classified as

a. Current Liability b. Current Asset

c. Long Term Liability d. Owner’s Equity

4. The following are examples of contra asset account except

a. Accumulated depreciation- Equipment b. Accumulated depreciation-Building

c. Bad debt Expense d. Allowance for Bad Debts

5. The elements of financial Statements are

I Assets IV Income II Liability

V Expenses III Equity

a. I, II, IV, V b. I, II, III

c. IV, V, I d. I, II, III, IV, V

Activity 1.2 (Critical Thinking)

Instructions: Choose the correct answer by writing the correct letter/s of your choice

1`. The elements of the financial statements include

1. Assets 4. Income

2. Liabilities 5. expenses

3. Equity

a. 1, 2 and 3 c. 1, 2 and 3

b. 1, 2, 3, 4 and 5 d. 1, 4 and 5

2. Information of the financial performance is provided by

a. Statement of profit and loss b. Statement of changes in owners

c. Statement of financial position d. Cash flow statement

3. The following are terms used synonymously with equity except

a. Capital c. Net worth

b. Net Assets d. Revenue

4. The following are examples of current Assets except

a. Cash b. Accounts c. Prepaid Expenses

b. Accounts Receivables d. Unearned Income

5. These are easily convertible into cash within the normal operating cycle of the business

a. Current liabilities c. Equity

b. Current Assets d. non -current assets

Independent Activity 2.1:

1. Angels Tutorial Center has an asset amounting to P 200,000, Liability is P 75,000. How much
is the owner’s equity account? 200,000-75,000=P125,000

2. Assets of TMAM is P15,000 and Total Equity is P10,000, how much is total Liabilities?

15,000-10,000= P5,000

3. Assets is equal to P350,000, Owner’s equity is 250,000, How much is Equity?

The equity is P250,000

Finding the liabilities= 350,000-250,000=P100,000 is the liability

4. Sure Fresh Company’s total liabilities amounted P30,000. Total equity had an ending balance
of P50,000. How much is total assets? 30,000+50,000= P80,000

5. Current Assets is P50,000, Non- Current Assets is P150,000.00, Current Liabilities is P10,000
and Non- Current Liabilities is P40,000, How much is the Equity of the company?

200,000-50,000= P150,000
Independent Activity 2.2 (Critical Thinking)
Instructions: Solve for the unknown: In answering the problems below, you must have to recall
the kinds of assets and liabilities account and their examples.

1. Theone Company had the following accounts at year end: Cash-150,000, Accounts Payable-
70,000, Prepaid Expenses-35,000. Compute for the company’s current assets.

150,000+35,000=185,000

*2. Theo Company’s Accounts Receivable amounted to P500,000. Prepaid Expense and
Unearned Income are 30,000 and 10,000 respectively. Cash balance amounted to P100,000
while Accounts Payable and Inventory are P20,000 and P 10,000 respectively. How much is the
company’s current assets? current liabilities? Current Assets= 640,000,

Current Liabilities= 30,000

3. Company’s Total Liabilities and Equity amounted to P825,000. Total non-current assets
ended at P 550,000. Cash totaled P50,000. Inventory amounted to Php100,000. Assuming the
company had no other assets, how much is the accounts receivable?

825,000-550,000=275,000-150,000= P125,000 is the accounts receivable

4. Total assets amounted to P755,000. Total equity amounted to P350,000. Accounts Payable
amounted to P80,000 while Unearned Income is P 85,000. Assuming there are no other current
liabilities, compute for the company’s noncurrent liabilities.

755,000-350,000=405,000-165,000= P240,000 is the noncurrent liabilities

5. Cash of P100,000, Accounts Receivables of P200,000, Prepaid Expenses of P30,000.00,

Equipment of P180,000 and Furniture of P20,000, How much is the total assets?

P530,000 total assets

Assessment
Instructions: Compute for the missing amount of the account titles taken from the SPF of
independent company Critical Thinking and Communication)

Php 12,000 1. Assets are Php 27,000 and owner's equity is Php15,000, liabilities?

Php 79,050 2. At the end of the first month of operations for TMAM Transportation, the
business had the following accounts: Accounts Receivable, Php2,800; Prepaid Insurance,
Php700; Equipment, Php85,500 and Cash, Php75,550. On the same date, TMAM owed the
following creditors: Mely’s Supply Company, Php8,000; Mark’s Equipment, Php19,500. The
current assets for the Juana’s Delivery Service are

Php 42,000 3. At the end of the first month of operations for Mary Anne’s, the business had the
following accounts: Accounts Receivable, Php4,800; Prepaid Insurance, Php15,000;
Equipment, Php68,200 and Cash, Php40,650. On the same date, Juana owed the following
creditors: Bonny Supply Company, Php42,000 (due in 6 months); Maria’s Equipment,
Php90,500 (due after 2 years). Current liability is

Php 70,000 4. If during the year total assets increase by Php85,000 and total liabilities decrease
by Php15,000, by how much did owner's equity increase/decrease?

Assets=197,900 Liabilities=99,900 Owner’s Equity=98,000 5.Using the following accounts Cash

– 15,000 Loans Payable – 77,500 Accounts Receivable – 6,300, Inventory- 7,400 Supplies –
4,200Equipment – 52,000 Owner’s equity – 98,000 Accounts Payable – 22,400 Building –
113,000,

How much is the total assets and Total Liabilities and Owner’s Equity?

Additional Activities
Prepare a SPF for the company using report form.

Your neighbor who has a Sari- Sari store hired you to prepare his sari-sari store’s Statement of
Financial Position. In order to prepare the statement, you identified the following assets and
liabilities of Mr. Martinez after he made an investment of P159,000.00.

a. His sari-sari store has cash deposited in a bank account amounting to P50,000

b. His sari-sari store has a lot of uncollected sales from customers amounting to P75,000

c. The total amount of merchandise left inside the store is P30,000

d. He already paid one year’s rent in advance amounting to P12,000

e. The value of all the company’s furniture amounted to P100,000

f. He bought merchandise from his supplier amounting to P25,000 and the supplier agreed that
payment can be made 2 months after year-end

g. SSS, Phil health and Pag-big payables for his one employee totaled P5,000

h. The sari-sari store had outstanding liabilities to utility companies amounting to P3,000

i. He had a loan from the bank amounting to P50,000 to be paid in 3 years

NEIGHBOR’S SARI-SARI STORE

 STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31 2020

ASSETS

CURRENT ASSETS

Cash 50,000

Account Receivable 75,000

Prepaid Rent 12,000

Merchandise Inv. __30,000

TOTAL CURRENT ASSETS 167,000

NON CURRENT ASSETS

Furnitures 100,000

TOTAL ASSETS 267,000

LIABILITIES

CURRENT LIABILITIES

Accounts Payable 3,000

SSS, Phil Health & Pag-ibig __5,000

TOTAL CURRENT LIABILITIES 8,000

NONCURRENT LIABILITIES

Loan Payable __50,000

TOTAL LIABILITIES 58,000

OWNER’S EQUITY

OWNER’S EQUITY

Capital 209,000

TOTAL LIABILITIES & OWNER’S EQUITY 267,000

Name: Jay Adrian M. Lozano____________Grade Level: 12___Section: Bezos___Score:______

Teacher: Mr.Cesar Algerre_________________School: Surigao del Norte National High School

Objective: To be able to identify the permanent accounts in the Chart of accounts given

Learning Content: Account titles under assets, liabilities and capital account of the
Statement of Financial Position

Worksheet Activity 1
Write P if the account title is permanent account and T if the account title is
temporary. Use another sheet of paper for your answer

P1 Assets T11 Utilities Expense

P2 Liabilities P12 Cash

P3 Owner's Equity P13 Building

P4 Capital P14 Furniture

T5 Revenues P15 Notes Payable

P6 Accounts Receivables T16 Owner's Drawing

P7 Accounts Payable T17 Supplies Expense

P8 Prepaid Rent P18 Supplies

P9 Unearned Rent P19 Notes Receivables

T10 Rent Expense P20 Notes Payable