Cash = $1,505,000; Rent Receivable = $250,000; Prepaid Expenses = $100,000; Buil
ID: 2558959 • Letter: C
Question
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)
I NEED A DETAILED BALANCE SHEET IF THAT IS POSSIBLE
Explanation / Answer
As per the information given, balance sheet as at the beginning of Q2 2016 will be as follows:
Balance Sheet as at the Beginning of Q2 2016
From the above balance sheet total assets as at the beginning of Q2 FY 2016 is calculated as follows:
Similarly, total current liabilities as at the beginning of Q2 FY 2016 is calculated as follows:
Now let us prepare important ledger accounts based on the transactions during the quarter to arrive at the closing balances for preparing balance sheet as at the end of the quarter:
Based on above balances, Balance Sheet at the end of Q2 2016 will be as follows:
Balance Sheet as at the end of Q2 2016
Liabilities Amount Assets Amount Shareholders’ Capital 12,310,000 Cash 1,505,000 Unearned Revenue 50,000 Rent Receivable 250,000 Accounts Payable 100,000 Prepaid Expenses 100,000 Accrued Liabilities 45,000 Prepaid Insurance 150,000 Building 10,500,000 12,505,000 12,505,000