Topics:
- Eagle entries using BSE mini-matrix and journal entries
- Financial statement effects for each entry:Balance sheet, Income statement, Indirect cash-flow statement
Eagle is a fictitious start-up manufacturing company. Eagle’s management has developed this model to prepare pro-forma financial statements as part of their business plan for their first year.
How can you use the Eagle Model? You can check your record keeping entries and determine how each entry affects the balance sheet, income statement, and the cash-flow statement. In addition, you can easily identify the entries that affect an account, which is an essential skill for reverse engineering these entries for real companies.
Prior to using the Eagle Model, students often have the misconception that they record entries into the Excel file. Instead, you record entries manually on paper and check your answers against entries recorded in the model.
To record entries, use the chart of accounts and descriptions of Eagles' entries. Then check your answers in the model as described in the Excel Model Reference document below.
Model:
Eagle Model [xls] You must enable macros.
Additional Materials:
Excel Model Reference [pdf]
Accounts: Eagle's chart of accounts [pdf] EntryInputs: Event descriptions [pdf]
Balance sheet [pdf]
Income statement [pdf]
Indirect cash-flow statement [pdf]
Mac Workarounds:
Recently, the Mac version of Microsoft Excel no longer supports Visual Basic macros. Unfortunately, the Eagle Excel Model requires macros. If you don’t have access to a PC, we have developed a few workarounds:
- “Account Selection” button alternative: This button reveals the effects of all entries on the selected account. As an alternative, see the Entries’ Affects on Accounts [pdf] document with screen shots, as if you were checking your answers in the model. You may also use this to check T-Accounts.
- “Focus on Event” and “Journal Entry” buttons alternative: These buttons reveal the entry behind an event and highlight the direct financial-statement consequences of the entry. As an alternative, see the video below that walks through the model using these buttons as if you were checking your answers in the model. This is mostly a silent movie with menus to go directly to the entry you want to check.
Mac Work-a-Round Eagle Model Entries and Financial-Statement Effects Video: [14 min]
[Only above video has menus; requires Flash]
iPod [mp4] iPhone/Android/iPad [mp4]
Also see:
Cardinal Excel Model
MMS Excel Model
