Home Programs Faculty Research Curriculum Center Public Resources My Account
Member Sign In
Shopping Cart  
My Account
My E-Packets
Browse Bibliography:
By Keywords:

By Type:
New/Updated Items
Popular Items
Background Notes
Primers and Books

By Functional Area:
Finance/Financial Management
Financial Accounting
Financial Analysis and Management
General Management
Management Accounting
Management Control Systems
Operations Management
Organizational Behavior

By Setting:
Developing Country
For Profit
Health Policy
Healthcare Management
Nonprofit Organization Management
Public Sector Management

Curriculum Center Browse Bibliography Build EPacket Pricing Structure Distribution Process Management Control in Nonprofit Organizations
Carson Realty Company (A)
Young, David W.
Functional Area(s):
   Financial Accounting
   For Profit
Difficulty Level: Beginner
Pages: 1
Teaching Note: Available. 
Copyright Clearance Fee:  $8.20  Sign in to find out if you are eligible for an Academic Price of $4.25 
Add Item to a new E-Packet

Add To Cart

Order an Free Inspection Copy

Back to Bibliography
First Page and the Assignment Questions:

The Carson Realty Company (CRC) owned several apartment buildings in Greater Carson, a small Midwestern community. It rented studio apartments, as well as one- and two-bedroom apartment units to individuals—mainly university students—in the town.

CRC began operations in July 2002. During the month of July, the following events occurred:

July 1 The company borrowed $24,000,000 on a 20 year note to finance its activities. There was a one-month grace period before interest was due on the note. Principal payments were due and payable on the first day of each month, beginning on August 1.
July 5 The company purchased an apartment building that was 90% occupied. After all closing costs, legal fees, and other purchase-related transactions had been completed, the building cost $15,000,000.
July 11 $500,000 in materials for renovations and repairs were purchased on credit. Payment was due August 11.
July 14 Tenants in 100 rental units paid their rent, which averaged $600 per unit.
July 15 Building staff was paid for the first half of July. Total payroll was $4,000.
July 28 Tenants in 200 rental units paid their rent, which averaged $500 per unit.
July 30 Utilities for the month were paid, totaling $15,000.
July 31 Building staff was paid for the last half of July. Total payroll was $5,000.


  1. Prepare a balance sheet for CRC as of July 31, 2002. To do so, draw up a basic balance sheet format, and make entries to the appropriate accounts for each event described above.
  2. By how much did the entity’s equity increase during July 2002? Why?
  3. How has CRC financed its assets? Is this good or bad?
  4. What questions might you ask CRC’s management about its strategy and its financial management decisions?