ADAPTIVE TEACHING GUIDE
Specialized Subject: Fundamentals
of ABM 2
Most Essential Topic # 1: Statement of Financial Position
Lesson # 1: Statement of Financial Position
Pre-requisite Content Knowledge: Fundamentals of Accounting 1
Pre-requisite Skills: Fundamentals of Accounting 1
Prerequisite Assessment: Answer the following questions:
1. Define the following terms: Assets, Liabilities and Owner’s Equity
2. Give specific account titles for each of the terms above.
Pre-lesson Remediation Activity:
1. For Students with Insufficient Level on Prerequisite Content-knowledge and/or Skill(s): Definition of terms
2. For Students with Fairly Sufficient Level on Pre-requisite Content-knowledge and/or Skill(s): Definition of terms and example of account titles
Introduction:
Time frame a student is expected to finish in learning the lesson (and where to contact the teacher when concerns arise)
The students will be given 2 weeks to finish this lesson. The teachers can be contacted through email, facebook and at school.
The knowledge (RUA) the student is expected to gain from learning the topic/lesson
● Identify the elements of the SFP and describe each of these items for a single/sole proprietorship business
● Prepare an SFP for a single/sole proprietorship business using the report form
● Prepare an SFP for a single/sole proprietorship business using the account form
Context where the student is going to apply his/learning (In what PAA/EFAA and personal use?)
● Problem Solving
Overview of the Lesson
The course deals with the preparation and analysis of financial statements of a service business and merchandising business using horizontal and vertical analyses and financial ratios.
Knowledge and skills in the analysis of financial statements will aid the future entrepreneurs in making sound economic decisions.
Statement of Financial Position - 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.
RUA of a Student’s Learning: (Online – Thru LMS / Offline – Thru Printed Copy)
1. To identify the elements of the SFP
Definiton of terms and identifying the parts of the SFP
2. To prepare SFP using Report Form
Solve the problem using the Report Form
3. To prepare SFP using Account Form
Solve the problem using the Account Form
Post-lesson Remediation Activity: (Online and Printed Copy)
Answer the question: Classification between Current and Noncurrent items
References/Sources:
Book/s:
Fundamentals of Accountancy, Business and Management 2
Author: Dani Rose C. Salazar
ADAPTIVE TEACHING GUIDE
Specialized Subject: Fundamentals
of ABM 2
Most Essential Topic # 2: Statement of Comprehensive Income
Lesson # 2: Statement of Comprehensive Income
Pre-requisite Content Knowledge: Fundamentals of Accounting I
Pre-requisite Skills: Fundamentals of Accounting I
Prerequisite Assessment: Answer the following questions:
1. Define the following terms: Statement of Comprehensive Income, Revenue, Income and Expense
2. Give specific account titles for each of the terms above.
Pre-lesson Remediation Activity:
3. For Students with Insufficient Level on Prerequisite Content-knowledge and/or Skill(s): Definition of terms
4. For Students with Fairly Sufficient Level on Pre-requisite Content-knowledge and/or Skill(s): Definition of terms and example of account titles
Introduction:
Time frame a student is expected to finish in learning the lesson (and where to contact the teacher when concerns arise)
The students will be given 2 weeks to finish this lesson. The teachers can be contacted through email, facebook and at school.
The knowledge (RUA) the student is expected to gain from learning the topic/lesson
● Identify the elements of the SCI and describe each of these items for a service business and a merchandising business
● Prepare an SCI for a service business using the single-step approach
● Prepare an SCI for a merchandising business using the multi-step approach
Context where the student is going to apply his/learning (In what PAA/EFAA and personal use?)
● Problem Solving
Overview of the Lesson
Define the term Statement of Comprehensive Income and introduce the term Temporary Accounts, STATEMENT OF COMPREHENSIVE INCOME – Also known as the income statement.
Contains the results of the company’s operations for a specific period of time which is called net income if it is a net positive result while a net loss if it is a net negative result. This can be
prepared for a month, a quarter or a year.
TEMPORARY ACCOUNTS – Also known as nominal accounts are the accounts found under the SCI. They are called such because at the end of the accounting period, balances under
these accounts are transferred to the capital account, thus having only temporary amounts and resulting to zero beginning balances at the beginning of the following year
Single-step – Called single-step because all revenues are listed down in one section while all expenses are listed in another. Net income is computed using a “single-step” which is
Total Revenues minus Total Expenses.
Multi-step – Called multi-step because there are several steps needed in order to arrive at the company’s net income.
a. Emphasize that the two are only formats and will yield the same amount of net income/loss
b. Discuss that single-step SCI is more commonly used by service companies while multi-step format is more commonly used by merchandising companies
Difference of the Statement of Comprehensive Income of a Service Company and of a Merchandising Company The main difference of the Statements of the two types of business lies
on how they generate their revenue. A service company provides services in order to generate revenue and the main cost associated with their service is the cost of labor which is presented
under the account Salaries Expense. On the other hand, a merchandising company sells goods to customers and the main cost associated with the activity is the cost of the merchandise which is
presented under the line item Cost of Goods Sold. In presenting these items on the Statement of Comprehensive Income, a service company will separate all revenues and expenses (as seen in
the single-step format) while a merchandising company will present total sales and cost of goods sold on the first part of the statement which will net to the company’s gross profit before
presenting the other expenses which are classified as either administrative expenses or selling expenses.
Student’s Experiential Learning:
Chunk 1: Definition of terms and Problem Solving
Formative Question: Learning is Fun Company generated revenues amounting to Php 100,000. Expenses for the year totaled Php 76,000. How much is the company’s net income for the year?
Chunk 2: Problem Solving
Formative Question: Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to 70,000. Freight In totaled 15,000. Compute for the company’s cost of goods
available for sale.
Chunk 3: Problem Solving
Formative Question: Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of purchases totaled Php 85,000. Beginning inventory amounted to Php 250,000. Sales amounted to Php
500,000. Compute for the company’s Ending Inventory
Synthesis: Learners will understand that:
c. The importance of preparing the SCI.
d. The difference of the two formats (single step and multi-step approach)
RUA of a Student’s Learning: (Online – Thru LMS / Offline – Thru Printed Copy)
3. To identify the elements of the SCI
● Definiton of terms and Problem solving using the merchandising and service business using the single and multi-step approach.
4. To prepare SCI using the single step approach
Solve the problem using the Single Step approach
5. To prepare SFP using Multi-Step approach
Solve the problem using the Multi-step approach
Post-lesson Remediation Activity: (Online and Printed Copy)
Answer the question: At the end of the first month of operations for Juan’s Service Company, the business had the following accounts: Cash, Php19,000; Prepaid Rent, Php500; Equipment,
Php5,000 and Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate
the net income to be reported by the company for this first month.
References/Sources:
Book/s:
Fundamentals of Accountancy, Business and Management 2
Author: Dani Rose C. Salazar
