Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $21,000 and has cash on hand of $28,000 contributed by Lanni’s owners. Lanni takes out a bank loan. It receives $32,000 in cash and signs a note promising to pay back the loan over 3 years. a. Prepare the balance sheet just after it gets the bank loan. assets liabilities & shareholders' equity cash ________ bank loan _________ computers ________ shareholders' equity ____________ total ___________ total ________ What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) b. Prepare the balance sheet after Lanni spends the $60,000 to develop its software product. assets liabilities & shareholders' equity software product ________ bank loan _________ computers ________ shareholders' equity ____________ total ___________ total ________ What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,950 shares for $76 per share. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. assets liabilities & shareholders' equity microsoft shares ________ bank loan _________ computers ________ shareholders' equity ____________ total ___________ total ________ c. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $21,000 and has cash on hand of $28,000 contributed by Lanni’s owners. Lanni takes out a bank loan. It receives $32,000 in cash and signs a note promising to pay back the loan over 3 years.
a. Prepare the balance sheet just after it gets the bank loan.
| assets | liabilities & shareholders' equity |
| cash ________ | bank loan _________ |
| computers ________ | shareholders' equity ____________ |
| total ___________ | total ________ |
What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)
b. Prepare the balance sheet after Lanni spends the $60,000 to develop its software product.
| assets | liabilities & shareholders' equity |
| software product ________ | bank loan _________ |
| computers ________ | shareholders' equity ____________ |
| total ___________ | total ________ |
What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)
c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,950 shares for $76 per share. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft.
| assets | liabilities & shareholders' equity |
| microsoft shares ________ | bank loan _________ |
| computers ________ | shareholders' equity ____________ |
| total ___________ | total ________ |
c. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)
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