Answer:
a-1. Prepare its balance sheet just after it gets the bank loan.
Lanni Products
Balance Sheet
After it got the bank loan
Assets:
Cash $70,000
Computer equipment $30,000
Total assets $100,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity
Paid in capital $50,000
Total shareholders's equity $50,000
Total liabilities and shareholders' equity $100,000
a-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = computer equipment / total assets = $30,000 / $100,000 = 30%
b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product.
Lanni Products
Balance Sheet
After it developed the software product
Assets:
Software $70,000
Computer equipment $30,000
Total assets $100,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity
Paid in capital $50,000
Total shareholders's equity $50,000
Total liabilities and shareholders' equity $100,000
b-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = (software + computer equipment) / total assets = $100,000 / $100,000 = 100%
c-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft.
Lanni Products
Balance Sheet
After it sold the software product to Microsoft
Assets:
Shares of Microsoft $125,000
Computer equipment $30,000
Total assets $155,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity
Paid in capital $50,000
Retained earnings $55,000
Total shareholders's equity $105,000
Total liabilities and shareholders' equity $155,000
c-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = computer equipment / total assets = $30,000 / $155,000 = 19.35%
