SEMI – DETAILED LESSON PLAN

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, power point presentation

III. Procedures:

1. Routinary Activities
2. Review: Reviewing the importance of keeping business record.
3. Motivation: “Picture-picture” The teacher will take actual picture of the class and
present two photos taken inside the classroom.
4. 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.
“Supposedly I am the owner of the GO 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 Income Statement and 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 income statement and
balance sheet. Choose a presenter to present group output.
 IV. Assessment:

Directions: Prepare the Income Statements and Balance Sheet.

Luzviminda Barros owns the ORO Salon in Cagayan de Oro City. The data and narrative
below pertained to her business for the month of January:

Product Sales P 17,500

Salaries Expense 5,000
Service Revenues 45,800
Rent Expense 1,750
Supplies Expense 3,000
Advertising Expense 8,500

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 at 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 Werpa, 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 Werpa’s gross profit, operating profit, earnings before taxes, and net
income?
 2. From the following accounts, prepare a balance sheet for the Windcharter
Company for the year ending December 31, 2016 (assume that these are the only
balance sheet accounts - use cash as a plug figure to balance the balance sheet):
Gross fixed assets 284,950 Inventories 136,500 Long term debt (excluding current
portion) 134,300 Accrued expenses 11,850 Accumulated depreciation 82,310 Short-
term bank loan (notes payable) 32,570 Preferred stock 8,000 Retained earnings
89,280 Current portion of L.T. Debt 4,080 Net accounts receivable 105,770 Additional
paid-in capital 71,600 Accounts payable 50,830 Common stock (0.20 par) 60,000
Cash?

a. What are Windcharter’s Current assets, Current liabilities, Total liabilities, Net fixed
assets and Total liabilities and net worth?

VI. Remarks:

Prepared by:

Allyn A. Mice