We are a real estate company.
We purchase, improve and manage
real estate properties. Here is our trial balance at beginning of year:
Contributions from owners
We had the following activity this year:
(1) Purchased a new rental property for $1,000,000, financed by
$200,000 contributions from owners and $800,000 borrowed on a
(2) Accrued $5,000,000 of rental income.
(3) Received payments for rent in the amount of $4,500,000
(4) Accrued property management expense of $735,000, of which
$700,000 was paid.
(5) Recorded depreciation expense of $1,000,000
(6) Accrued salaries of $250,000, all of which were paid by the end of
(7) Paid lenders $2,000,000, of which $1,750,000 was for interest, the
rest to reduce the debt - * At the end of the year, $500,000 of the