Fundamentals of Accountancy, Business and Manangement 2- Financial Statements

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1. Fundamentals of Accountancy, Business and Management 2 FINANCIAL STATEMENTS SUBJECT TEACHER: HAZEL G. DURANGPARANG Fundamentals of Accountancy, Business and Management 2

2. PRAYER Dear Lord, we thank you for the gift of life today; You allow us to have another day to praise You and see Your glory. Thank You for the love and protection, especially during the hard times. Bless us Father with Your wisdom as we begin our class. Help us to focus our hearts and minds on what we are about to learn; Inspire us by Your Holy Spirit as we think and listen to the class discussion. Guide us by Your eternal light as we discover more about the world around us. We ask this in the mighty name of Jesus, Amen!

3. 1. Raise your hand when you speak 2. Listen when others are talking 3. Turn off your mobile phones 4. Be respectful 5. Be responsible HOUSE RULES Note: Speak in English

4. clue: 1 word, 6 letters What's the word that links these four together? PROFIT

5. clue: 1 word, 8 letters What's the word that links these four together? EXPENSES

6. clue: 1 word, 4 letters What's the word that links these four together? LOSS

7. clue: 1 word, 7 letters What's the word that links these four together? SERVICE

8. LESSON OBJECTIVES At the end of the lesson, the students will be able to: a. Discuss the Statement of Changes in Equity (SCE) for single proprietorship; b. prepare a Statement of Changes in Equity (SCE) for single proprietorship using the proper format; and c. appreciate the importance of preparing the SCE for single proprietorship in business.

9. Yes or No? Random Edition

10. The Rules Answer each question within 10 seconds If the answer is correct the player will get 1 point if the answer is wrong the player will lose 1 point

11. Is a sole proprietorship owned by a single individual? Question 1 Yes or No?

12. Yes The Answer

13. Can a sole proprietor have multiple business locations? Question 2 Yes or No?

14. Yes The Answer

15. Does a sole proprietorship need special registration? Question 3 Yes or No?

16. No The Answer A sole proprietorship typically does not need special registration beyond basic local business licenses.

17. Is the owner personally liable for business debts in a sole proprietorship? Question 4 Yes or No?

18. Yes The Answer

19. Can a sole proprietorship hire employees? Question 5 Yes or No?

20. Yes The Answer

21. Does a sole proprietorship need to follow specific business regulations and licenses? Question 6 Yes or No?

22. Yes The Answer

23. LET’S DO THIS! Present your financial statements

24. Rubrics for the presentation

25. Timer

26. First presenter

27. Second Presenter

28. Let’s Analyze 1 How does the Statement of Changes in Equity enhance transparency for investors and creditors? What happens to the equity balance when the owner makes a large withdrawal? 2 3 From the presentations earlier, what role does net income or loss play in the changes in owner’s equity?

29. What are the main components of owner's equity in a sole proprietorship?

30. Owner's equity includes the owner’s capital account, which reflects initial investment, additional contributions, withdrawals, and accumulated profits or losses.

31. What is the impact of withdrawals in the equity of a sole proprietorship?

32. Withdrawals decrease the owner's equity. Understanding this impact is key for accurately reporting changes in equity

33. or

34. What is the format in preparing the Statement of Changes in Owner’s Equity?

35. Samantha owns a sole proprietorship called "Samantha’s Crafts." At the beginning of the year, her capital account balance was 30,000. During the year, Samantha made an additional investment of 3,000 into the business. The business earned a net income of 12,000, and Samantha withdrew 4,500 for personal use. There were no other adjustments or errors.

36. Prepare the Statement of Changes in Equity for Samantha’s Crafts for the year ended December 31, 2024, and determine the ending balance of Samantha’s capital account. (Answer by pair in a 1/4 sheet of paper, follow the format)

37. How much is the ending balance of Samantha’s capital account? Php 40, 500

38. 1. The opening balance of equity is the same as the ending balance from the previous period.. TRUE OR FALSE False

39. 2. Contributions by the owner reduce the owner’s equity. TRUE OR FALSE False

40. 3. Withdrawals by the owner increase the owner’s equity TRUE OR FALSE False

41. 4. Net income increases the owner’s equity. TRUE OR FALSE True

42. 5. The Statement of Changes in Equity shows the total revenues and expenses of the business TRUE OR FALSE False

43. 6. Owner’s equity is calculated by subtracting total liabilities from total assets. TRUE OR FALSE True

44. Assignment Study in advance the Statement of Cash Flows scan the qr code here:

45. Do not focus on numbers. Focus on doing what you do best. THANK YOU! -Ma’am HAZEL