Vadeo Inc Solution

Table of Contents
Vadero Inc Solution

Notes
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Vadero Inc Solution
Vadero Inc engaged in the following transactions:

1. Issued common shares of 300.

2. Bought equipment for 200.
3. Bought inventory of 100. 80 of this was paid in cash. The remainder is outstanding at the balance sheet date.
4. Sold 75% of the inventory for 120. 100 of this had been received in cash at the balance sheet date.
5. Paid cash expense of 15.

Construct the balance sheet of Vadero Inc.

Recording Transactions:
1. Cash Dr 300
Common shares Cr 300

2. Plant and equipment Dr 200

Cash Cr 200

3. Inventory Dr 100
Cash Cr 80
Accounts payable Cr 20

4. Cash Dr 100
Accounts receivable Dr 20
Cost of sales Dr 75
Inventory Cr 75
Revenue Cr 120

5. Expenses Dr 15
Cash Cr 15

Balance Sheet
Assets Liabilities
Current assets: Current liabilities:
Cash 105 Accounts payable
Accounts receivable 20
Inventory 25 Non-current liabilities:
Total current assets 150
Shareholders' equity
Non-current assets: Common shares
Plant and equipment 200 Retained earnings
Total non-current assets 200 Revenues
Cost of sales
 Expenses

Total assets 350 Total liabilities and shareholders' equity

balance sheet date.

20

300

120
(75)
 (15)
30
holders' equity 350