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BALANCE SHEET

(Written Report)
Fina 3053 Financial Controllership P-1
Prof. Dean Noel M. Fabella

Agao, Axel John

Diaz, Shann Irish R.

Almario, Herwin P.

Esguerra, Maricar G.

Ayroso, Jordan

Fernandez, Jonald

Buena, Jhornalie V.

Manzano, Mary Grace M.

Cornejo, Romel M.

Mendoza, Marie Nichole S.

Damilao, John Harry V.

Nantiza, Edress

ASSETS - any item of economic value owned by an individual or corporation, especially that
which could be converted to cash. Anything tangible or intangible that is capable of being
owned or controlled to produce value and that is held to have positive economic value.
1. Current Assets - A balance sheet account that represents the value of all assets that are
reasonably expected to be converted into cash within one year in the normal course of
business.
2. Non-Current Assets - A company's long-term investments, in the case that the full value
will not be realized within the accounting year. Noncurrent assets are capitalized rather
than expensed, meaning that the company allocates the cost of the asset over the number
of years for which the asset will be in use, instead of allocating the entire cost to the
accounting year in which the asset was purchased.
LIABILITIES defined as the future sacrifices of economic benefits that the entity is
presently obliged to make to other entities as a result of past transactions or other past events, the
settlement of which may result in the transfer or use of assets, provision of services or other
yielding of economic benefits in the future.
1. Current Liability - A company's debts or obligations that are due within one year. Current
liabilities appear on the company's balance sheet and include short term debt, accounts
payable, accrued liabilities and other debts.
2. Non-current Liability - A business's long-term financial obligations that are not due
within the present accounting year. Examples of noncurrent liabilities include long-term
borrowing, bonds payable and long-term lease obligations. Any noncurrent liabilities will
be listed on the company's balance sheet.
CAPITAL/OWNERS EQUITY - Owner's equity represents the owner's investment in the
business minus the owner's draws or withdrawals from the business plus the net income (or
minus the net loss) since the business began. Mathematically, the amount of owner's equity is the
amount of assets minus the amount of liabilities.

Current Assets
A current asset is an item on an entitys balance sheet that is cash, a cash equivalent, or which
can be converted into cash within one year.

Cash, including foreign currency


Investment, except for investment that cannot be easily liquidated

Prepaid expenses
Accounts receivable
Inventory

These items are typically presented in the balance sheet in their order of liquidity, which means
that the most liquid items are shown first.
Cash and cash equivalent (CCE) an item on the balance sheet that reports the value of a
companys assets that are cash or can be converted into cash immediately.
Trade and other receivables-net categorized as loans and receivables, are recognized initially at
fair value and subsequently measured at amortized cost using the effective interest rate method,
less provision impairment.
Financial asset at fair value through profit or loss financial asset at fair value through profit or
loss include financial sets held-for-trading and financial assets designated upon initial
recognition at fair value through profit or loss.
Residential and condominium units for sale residential and condominium
Property development cost total /sum of all cost incurred from initiation
Prepayments and other current assets-et the satisfaction of a debt or installment payment before
its official due date.
Cash the bank that accepts at face value in any medium of exchange
Petty Cash Fund amount set aside for small expenses
Accounts Receivable amounts collectible arising from services rendered
Notes Receivable - written promise to pay, representing an amount to be received by a
business
Interest Receivable amount of interest earned on a note receivable; not yet collected
Cash - Situation 1
On December 1, 2014, Mr. Donald Gray started Gray Electronic Repair Services by investing
P10,000.
Situation 2
On December 5, Gray Electronic Repair Services paid registration and licensing fees for the
business,P370.

Petty cash fund- Situation 1


Company A created a petty cash fund of P9000 on Jan 1, 2012.
Situation 2
During January 2012, following disbursements were made from the fund:
Office Supplies
Highway Toll
Postage
Freight-In

P300
50
30
P350

Accounts receivable - Situation 1


Received P66,000 from patient on account
Situation 2
ABC International offers a P1000 discount to a customer if it pays a P20,000 invoice within 10
days of the invoice date

Non-Current Assets
1. Property and Equipment -tangible assets that are owned by the business are permanent in
nature and have a long life and are used in the business
2. Land -the site where the building used as office or store is constructed.
3. Building -cost of the building owned and being used by the business
4. Equipment -includes calculator, typewriters, adding machines, computers, electric fan,
duplicating machines, air conditioner, telephone and many others.
5. Furniture and Fixture includes chairs, tables, counters, display cases, shelves, dividers,
conference tables, built-in-cabinets and etc.
6. Accumulated Depreciation -this is a 'contra asset account' or an 'asset offset' account.
This is a valuation account which is shown as a deduction from the cost of the related
asset account.
7. Other assets -assets that cannot be classified in the above classifications are called other
assets such as Tools which is the account title used for hammers, pliers, wrench and
others.
8. Intangible asset -a long lived asset that is useful in the operations of an enterprise, is not
held for sale, and is without physical qualities. Examples are patents, goodwill, franchise,
copyrights, trademarks and others.
Long-term Assets

1. Trade receivables documented on formal invoice, which are summarized in an accounts


receivable aging report. This report is commonly used by the collections staff to collect
overdue payments from customers
2. Joint venture a business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task.
3. Land for future use
4. Investments in available-for-sale securities a debt or equity security the intent of selling
before it reaches maturity, or selling prior to a healthy time period in the event the
security does not have a maturity.
5. Investments in and advance to Affiliates, Subsidiaries, Associates, and Joint Ventures
Total investments in an entity in which the entity has significant influence, but does not
have control, subsidiaries that are not required to be consolidated and are accounted for
using the equity and or cost method
6. Investment Property a real estate property that has been purchased with the intention of
earning a return on the investment (purchase), either through rent (income), the future
resale of the property, or both.
7. Property and Equipment a company asset that is vital to business operations but cannot
be easily liquidated. The value of property, plant and equipment is typically depreciated
over the estimated life of the asset.
8. Deferred Tax Asset created due to taxes paid or carried forward but not yet recognized
in the income statement. Its value is calculated by taking into account financial reporting
standards for book income and the jurisdictional tax authoritys rules for taxable income.

LIABILITIES
LIABILITY (financial accounting), a current obligation of an entity arising from past transaction
or events.
Current Liabilities
A companys debts or obligation that is due within one year. Current liabilities appear on the
companys balance sheet and include short term debt, accounts payable, accrued liabilities and
other debts.
MEGAWORLD
(Statement of financial position)

Current Liabilities

1. Interest -Bearing note (notes payable) - a loan between lender and borrower which accrues
interest over the predetermined loan period. Borrowers promise to repay the principal balance as
well as any accrued interest.
2. Trade Payable - is an amount billed to a company by its suppliers for goods delivered to or
services consumed by the company in the ordinary course of business.
3. Customers Credit These are payments made by customer in advance of completion of their
orders for goods or services.
4. Reserve plant or property liability for reserve plant or property on hand.
5. Deferred Revenue on real estate sale when we say deferred revenue or unearned revenue it is
a liability because this revenue was collected in advance but not has been yet earned. It also
represents products or services that are owed to the government but not yet paid.
6. Income taxes payable these income taxes owed to the government but not yet paid.
7. Other payable- it refers to all other payables of the company.

Liability- the higher the liability of an entity is the worst. Paying Liability has the priority incase
of business liquidation.

Deferred income on real estate salesDeferred tax liabilities- occurs when taxable income is smaller than the income reported on the
income statements.
Advances from associates and other related partiesRetirement benefit plan- an arrangement by which an entity provides benefits to employees after
they terminate from service. (Post-employment benefits)
Post-employment benefit plans are classified as either defined benefit plans or defined
contribution plans, depending on the substance of the plan as derived from its principal terms and
conditions.
STOCKHOLDERS EQUITY
Total assets minus its total liabilities. Same as through with share capital plus retained earnings
minus treasury shares. Also known as "share capital", "net worth" or "stockholders' equity".
The money that was originally invested together with additional investments is the first and
original source. While the retained earnings that is able to accumulate over time through
operation is the second source.

Non-Controlling Interest An ownership stake in a corporation where the held position


gives the investor no influence on how the company is run. Most of the investor position was
made to be a non-controlling interest because the portioned owned/invested is not significant
relative to the total number of outstanding shares. It is generally not until one control's 5-10%
that they can push for a seat on the board, or enact changes at the shareholders meetings
Capital stock is the number of shares that a company's charter authorizes for issuance
The common and preferred stock a company is authorized to issue, according to their corporate
charter. Capital stock represents the size of the equity position of a firm and can be found on the
balance sheet (or notes) of a typical financial statement. Firms can both issue more capital stock,
or buyback shares that are currently owned by shareholders.
Paid-in Capital or Contributed Capital
Paid-in capital (or "contributed" capital) is that section of stockholders' equity that reports the
amount a corporation received when it issued its shares of stock.
State laws often require that a corporation is to record and report separately the par amount of
issued shares from the amount received that was greater than the par amount. The par amount is
credited to Common Stock. The actual amount received for the stock minus the par value is
credited to Paid-in Capital in Excess of Par Value.
Additional paid-in capital (APIC), also called capital in excess of par value, is a
measure of how much money investors have pumped into the company since inception in
return for equity. The line item appears on the balance sheet.
Additional paid-in capital is any payment received from investors for stock that exceeds the par
value of the stock. The concept applies to payments received for either common stock or
preferred stock. Par value is typically set extremely low, so most of the amount paid by investors
for stock will be recorded as additional paid-in capital. Par value is commonly set at $0.01.
There is no change in the additional paid-in capital account when a company's shares are traded
on a secondary market between investors, since the amounts exchanged during these transactions
do not involve the company that issued the shares.
Retained Earnings

The percentage of net earnings not paid out as dividends, but retained by the company to
be reinvested in its core business, or to pay debt. It is recorded under shareholders'
equity on the balance sheet.

The formula calculates retained earnings by adding net income to (or subtracting any net
losses from) beginning retained earnings and subtracting any dividends paid to
shareholder.