Scribd
Upload
47 views

Practice Exercise - Lagos - Blank

Uploaded by

naifx93k
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
47 views

Practice Exercise - Lagos - Blank

Uploaded by

naifx93k
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Practice Exercise - Lagos Trading - Blank Strictly Confidential

Table of Contents

Lagos Balance Sheet

© 2015 to 2024 CFI Education Inc.


This Excel model is for educational purposes only and should not be used for any other reason. All content is Copyright material of CFI Education Inc.
All rights reserved. The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected
under international copyright and trademark laws. No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any
form by any means, including photocopying, recording, or other electronic or mechanical methods, without prior written permission of the publisher,
except in the case of certain noncommercial uses permitted by copyright law.
https://corporatefinanceinstitute.com/
Construct a Balance Sheet for Lagos Trading Inc.

You have been asked to build a Balance Sheet for a company called Lagos Trading Inc. that has undertaken the following transactions

1. Issued common shares of 400.


2. Borrowed 200 from the bank for 5 years.
3. Bought property & equipment for 350 using cash.
4. Bought inventory of 150 on credit. The entire amount is still outstanding at the balance sheet date.
5. Sold 50% of the inventory for 200. 50 of this had been received in cash at the balance sheet date.
6. Paid a cash operating expense of 20.
7. Paid the bank interest of 10 for the loan.

Balance Sheet

ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Current Assets Current Liabilities


Cash 270 ☑️ Accounts Payable 150 ☑️

Accounts Receivable 150 ☑️ Total Current Liabilties 150


Inventory 75 ☑️

Total Current Assets 495 Non-Current Liabilities


Long-Term Debt 200 ☑️

Non-Current Assets Total Non-Current Liabilities 200


Property, Plant & Equipment 350 ☑️

Total Non-Current Assets 350 Shareholders' Equity


Common Shares 400 ☑️

Retained Earnings
Revenue 200 ☑️

Cost of Sales (75) ☑️

Other Operating Expenses (20) ☑️

Interest Expense (10) ☑️

Total Retained Earnings 95


Total Shareholders' Equity 495

Total Assets 845 Total Liabilities & Equity 845

Total Assets 845 COMPLETE


Total Liabilities & Equity 845
Difference –

For a value of zero, please enter a zero instead of leaving the cell blank. ⁽¹⁾

Practice Exercise - Lagos Trading Page 3 of 4


Construct a Balance Sheet for Lagos Trading Inc.

You have been asked to build a Balance Sheet for a company called Lagos Trading Inc. that has undertaken the following transactions

1. Issued common shares of 400.


2. Borrowed 200 from the bank for 5 years.
3. Bought property & equipment for 350 using cash.
4. Bought inventory of 150 on credit. The entire amount is still outstanding at the balance sheet date.
5. Sold 50% of the inventory for 200. 50 of this had been received in cash at the balance sheet date.
6. Paid a cash operating expense of 20.
7. Paid the bank interest of 10 for the loan.

Balance Sheet

ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Current Assets Current Liabilities


Cash 270 Accounts Payable 150
Accounts Receivable 150 Total Current Liabilties 150
Inventory 75
Total Current Assets 495 Non-Current Liabilities
Long-Term Debt 200
Non-Current Assets Total Non-Current Liabilities 200
Property, Plant & Equipment 350
Total Non-Current Assets 350 Shareholders' Equity
Common Shares 400
Retained Earnings
Revenue 200
Cost of Sales (75)
Other Operating Expenses (20)
Interest Expense (10)
Total Retained Earnings 95
Total Shareholders' Equity 495

Total Assets 845 Total Liabilities & Equity 845

Total Assets 845


Total Liabilities & Equity 845
Difference –

Practice Exercise - Lagos Trading Page 4 of 4

You might also like