FUNDAMENTALS OF ACCOUNTANCY, BUSINESS & MANAGEMENT 2

QUARTER 1 MODULE 1 WEEK 1

STATEMENT OF FINANCIAL POSITION (SFP)

JENNY MAE D. OTTO GRADE 12 ABM-YEN

ASSESSMENT

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

SOLUTION:

Assets Php27,000

Owner’s Equity - Php15,000

Liabilities Php12,000

Liabilities = Assets - Owner's equity

                 = 27,000 - 15,000
                 = 12,000

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

SOLUTION:

Accounts Receivable Php 2, 800

Prepaid Insurance Php 700

Cash Php 75,550

Current Assets Php 79, 050

Current assets = Accounts receivable + Prepaid insurance + Cash 

                          = 2,800 + 700 + 75,550
                          = 79,050

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

SOLUTION:

Current liability = Creditors for supplies

                           = Php 42,000
 
Note: Current liability duration is one year.
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?

SOLUTION:

Total Assets +Php 85,000

Total Liabilities (-15,000)

Total Owner’s equity Php 100,000

Accounting equation:
Total Assets = Total liabilities + Total owner's equity
+85,000 = (-15,000) + Total owner's equity
Total owner's equity = 85,000 + 15,000 
                                    = 100,000

Therefore, owner's equity increased by Php 100,000.

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?

SOLUTION:

Cash Php 15,000

Accounts Receivable Php 6,300

Inventory Php 7,400

Supplies Php 4,200

Equipment Php 52,000

Building Php 113,000

Total Assets Php 197,900

Loans Payable Php 77,500

Accounts Payable Php 22,400

Total Liabilities Php 99,900

Owner’s Equity Php 98, 000

Total assets = Cash + Accounts receivable + Inventory + Supplies + Equipment + Building

                      = 15,000 + 6,300 + 7,400 + 4,200 + 52,000 + 113,000
                      = 197,900
Total liabilities = Loans payable + Accounts payable
                         = 77,500 + 22,400
                         = 99,900
Owner's equity = 98,000
 
We can verify with accounting equation
Total Assets = Total liabilities + Total owner's equity
197,900 = 99,900 + 98,000
197,900 = 197,900