How do you list the value of a shared airplane ownership?

Owners use a balance sheet to show an organization’s financial position at a specific date. It helps to summarize an organization’s value. The balance sheet presents a listing of assets, liabilities and owner’s equity. It’s called a balance sheet because assets equal liabilities plus owner equity. The numbers must balance.

This is the most accepted method to list the value of a shared airplane ownership. It shows what the company owns as well as what it owes. In this series, we’ll review how to prepare and present the balance sheet in a shared ownership.

Example Balance Sheet Classifications

Cirrus-We-Own, LLC

Balance Sheet

May 31,2016

ASSETS LIABILITIES & OWNERS EQUITY
Cash & Receivables 8,517 Credit Cards 690.55
Funded Reserves 19,000 Other Payables
Prepaid Items 4,543
Aircraft: Cirrus SR22 230,600 Capital Accounts
Member – Jones 87,323
Member – Smith 87,323
Member – Brown 87,323
Total Assets $262,660 Total Liabilities $262,660

Next week we’ll review assets listed on the balance sheet in more detail.

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