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
|ASSETS||LIABILITIES & OWNERS EQUITY|
|Cash & Receivables||8,517||Credit Cards||690.55|
|Funded Reserves||19,000||Loan Payable|
|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.
Copyright 2016 wikiWings, LLC, All rights reserved