CLASSROOM OBSERVATION

LESSON PLAN
October 17, 2018

I. Content Standard:
The learner demonstrates understanding of concepts, underlying principles, and processes of
starting and operating a simple business.

Performance Standard:
The learner independently or with his/her classmates starts and operates a business according to
the business plan and presents a terminal report of its operation.

Learning Competency:
Prepare an income statement and a balance sheet (CS_EP11/12ENTREP-Oa-i-21)

Learning Objectives:
a. Identify the basic format of an income statement and balance sheet.
b. Prepare basic income statement and balance sheet.
c. Show appreciation of the importance of income statement and a balance sheet in business.

II. Content:
ENTREPRENEURSHIP
Topic: INCOME STATEMENT AND BALANCE SHEET
Reference: Basic Accounting, by Win Balada, CPA
Materials: Laptop, Projector, Manila paper, and marking pen

III. Procedures:

1. Routinary Activities
2. Review: “Look-8” Locate the account types. Reviewing the Account types found in Trial Balance.
3. Development of the Lesson

A. Activity
1. The teacher will ask the class who among them had an experience of selling any goods in the
school. Let the student give the details of the product he/she sell and how it was recorded.
2. The teacher will assume a story that leads to the use of balance sheet. “Suppose I am the owner
of the Cocos Hotel and give it to one of the student”

B. Analysis:
1. How did the student realize the gain or loss of the product he/she sell?
2. Based on the assume story, do you think that the student who will receive that Hotel will
consider as millionaire?

C. Abstraction:
1. Discussion, then provide business sample and prepare Balance Sheet.

D. Application:
Collaborative work of the students with a group of 10. Given an adjusted Trial Balance of Wedding
“R” Us each group will prepare a balance sheet. Choose a presenter to present group output.

IV. Assessment:
Directions: Prepare the Income Statements and Balance Sheet.
 Ambong owns the ORO Salon in Cagayan de Oro City. The data and narrative below pertained to her
business for the month of January:

On Jan. 1, 2017 Barros had a capital balance of P145, 000. During the month, she withdrew P16, 000 in
anticipation of profits.

Oro Salon has the following assets and liabilities as of Jan. 31, 2017: Cash, P23, 000; Beauty Supplies, P8,
000; Beauty Equipment, P150, 000; Notes Payable, P22, 750; Accounts Payable, P3, 000.

V. Assignment:

1. Prepare a multi-step income statement for Aphrodite, Incorporated (a furniture retailer) for the year ending
December 31, 2016 given the information below: Interest expense 17,090 Beginning inventory 63,210
Depreciation expense 12,510 Management salaries 17,950 Advertising expenditures 12,930 Ending inventory
68,390 Gross Sales 462,720 Taxes 3,270 Returns and allowances 10,210 Lease payments 39,270 Materials
purchases 228,580 R&D expenditures 4,890 Repairs and maintenance costs 2,910

a. What is Aphrodite’s gross profit, operating profit, earnings before taxes, and net income?

Presented by: Observed by:

CHIRLIE F. TOMPONG CRISANTO F. LASCUNA

Teacher 1 Master Teacher 1

Noted by:

ROMUALDO G. VALDEZ, Ed. D

School Principal 1

Assessment Answers Key:

Oro Salon
 Income Statement
For the month ended, January 31, 2017

Revenues:
Product Sales 17,500.00
Service Revenue 45,800.00
Total
Revenues 63,300.00
Expenses:
Salaries Expense 5,000.00
rent Expense 1,750.00
Supplies Expense 3,000.00
Advertising Expense 8,500.00
Total
Expenses 18,250.00

Net Income 45,050.00

Oro Salon
Balance Sheet
For the month ended, January 31, 2017

Asset
Cash 23,800.00
Beauty Supplies 8,000.00
Beauty Equipment 150,000.00
Total Assets 181,800.00
Liabilities
Notes Payable 22,800.00
Accounts Payable 30,000.00
Owner's Equity
Barros,Capital 129,000.00
Total Liabilities and Owners
Equity 181,800.00