Discussion and examples of formulating Balance Sheet

2. Opening Prayer

4. •identify the elements of the
SFP and describe each of
them
•prepare an SFP using the
report form and the account
form with proper
classification of items as
current and noncurrent

5. •Statement of Financial Position
(SFP) 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
condition of the company on a
specific date. (Haddock, Price,
& Farina, 2012)

6. •As the name suggests,
these accounts are
permanent in a sense that
their balances remain
intact from one
accounting period to
another. (Haddock, Price,
& Farina, 2012)

7. •include Cash, Accounts
Receivable, Accounts
Payable, Loans Payable
and Capital among
others. Basically, assets,
liabilities and equity
accounts are permanent
accounts

8. •Are those accounts that
are presented under the
assets portion of the
SFP but are reductions
to the company’s
assets.

11. •Report Form
•Account Form

12. •Is an SFP that shows
asset accounts first and
liabilities and then OE.

13. •Is an SFP that shows
asset on the left side
and then liabilities and
OE on the right side just
like the debit and credit
balances of an account.

14. •Assets that can be
realized (collected, sold,
used up) one year after
year-end date.
•Cash, ARs, Merchadise
Inventory, Prepaid
Expense, etc.

15. •Assets that cannot be
realized (collected, sold,
used up) one year after
year-end date.
•Property, Plant and
Equipment (equipment,
furniture, building, land),
Long Term Investments,
Intangible Assets etc.

16. •Liabilities that fall due
(paid, recognized as
revenue) within one year
after year-end date.
•Notes Payable, Accounts
Payable, Accrued
Expenses, Unearned
Income.

17. •Liabilities that do not fall
due (paid, recognized as
revenue) within one year
after year-end date.
•Loans Payable, Mortgage
Payable, etc.

18. HEADING
CURRENT
ASSETS
NON-
CURRENT
ASSETS
CURRENT
LIABILITIES
NON- CURRENT
LIABILITIES
OWNER’S EQUITY

20. • Write your current savings and everything that you
own (clothes, money, gadgets, jewelry etc.) Give
approximate amount on each of the item that you
owned.
• Write the amount that you owe to your friends,
family members, parents (tuition)
• Deduct the amount you owe from the amount you
own
• Associate amounts owned with assets and amount
owed with liabilities with the net amount as equity.

21. Glory be to the Father,
And to the Son,
And to the Holy Spirit.
As it was in the beginning
Is now and will be forever,
AMEN