BALANCE SHEET

(Written Report)

Fina 3053 Financial Controllership P-1

Prof. Dean Noel M. Fabella

Agao, Axel John

Almario, Herwin P.

Ayroso, Jordan

Buena, Jhornalie V.

Cornejo, Romel M.

Damilao, John Harry V.

Diaz, Shann Irish R.

Esguerra, Maricar G.

Fernandez, Jonald

Manzano, Mary Grace M.

Mendoza, Marie Nichole S.

Nantiza, Edress

ASSETS - any item ofeconomic valueowned by an individual orcorporation, especially that which could be converted tocash. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positiveeconomic 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 presentlyobligedto make to other entities as a result of past transactions or otherpastevents,the settlement of which may result in the transfer or use ofassets, 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 liabilitiesappear on the company's balance sheet and include short term debt, accounts payable, accruedliabilitiesand 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 ofassetsminus 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

P300

Highway Toll

50

Postage

30

Freight-In

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 sales-

Deferred tax liabilities- occurs when taxable income is smaller than the income reported on the income statements.

Advances from associates and other related parties-

Retirement 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 stockis the number ofsharesthat 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.

Additionalpaid-in capital(APIC), also calledcapitalin excess ofpar value, is a measure of how muchmoneyinvestors have pumped into the company since inception in return forequity. The line item appears on thebalance sheet.

Additional paid-in capitalis any payment received from investors for stock that exceeds thepar valueof 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 ofnet earningsnot paid out asdividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded undershareholders' equityon 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.