How do you present owner’s equity on the balance sheet of a shared airplane ownership?

Owner equity is also known as the book value of a company because it is equal to total assets minus reported liabilities. Each co-owner of the airplane should have a capital account similar to the example shown on this balance sheet.

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 Loan Payable
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

Revenue and expenses are income statement accounts.  We’ll review basic booking for those items in future posts.

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