Fitch Global Real Estate Corp had the following Q2 FY2016 beginning balances: Cash = $1,505,000; Rent...

Fitch Global Real Estate Corp had the following Q2 FY2016 beginning balances:

Cash = $1,505,000; Rent Receivable = $250,000; Prepaid Expenses = $100,000; Building = $10,500,000; Prepaid Insurance = $150,000; Insurance Expense = $350,000; Unearned Revenue = $50,000; Accounts Payable = $100,000; Accrued Liabilities = $45,000; Salaries Expense = $550,000; Shareholders’ Capital = $12,310,000.

In addition, the company had the following transactions during Q2 that ended on June 30, 2016:

The company’s total rental revenue for Q2 FY2016 was $2,500,000. Of this amount $2,000,000 was collected during Q2 FY2016.

$230,000 of the Rent Receivable outstanding at the beginning of the quarter was collected during Q2 FY2016.

The company incurred total operating expenses of $850,000 for Q2 FY2016. All these expenses were paid except $50,000.

What is the total current assets at the beginning of Q2 FY2016? (10 points)

What is the total current liabilities at the beginning of Q2 FY2016? (10 points)

Present the balance sheet at the end of Q2 2016. (20 points)

Expert Solution

ekkarill92 answered 1 year ago

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