mall community. It rented studio apartments, as well as one-and two-bedroom apartment units to individualsmainly university studentsin the town. CRC began operations in July 2012. During the month of July, the following events occurred: July 1 July 5 The company borrowed $24,000,000 on a 20 year note to nance its activities. There was a one-month grace period before interest was due on the note. Principal payments were due and payable on the rst day of each month, beginning on August 1. 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 rst 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. Assignment 1. Prepare a balance sheet for CRC as of July 31, 2012. 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 CRCs equity increase during July 2012? Why? 3. How has CRC nanced its assets? Is this good or bad? Why? 4. What questions might you ask CRCs management about its strategy and its nancial management decisions?