Creating the balance sheet


Response to the following problem:

Jan Nab is the sole owner of Deer Park, a public camping ground near the Lake Mead National Recreation Area. Jan has compiled the fololwing financial information as of December 31, 2010.

Revenues during 2010 - Camping Fees: $140,000

Revenues during 2010 - General Store: $50,000

Accounts Payable: $11,000

Cash on hand: $23,000

Original cost of Equipment: $105,500

Market value of lequipment: $140,000

Notes payable: $60,000

Expenses during 2010: $150,000

Supplies on hand: $2,500

INSTRUCTIONS:

(a) Determine Jan Nab's net income from Dee Park for 2010

(b) Prepare a balance sheet for Deer Park as of Decemer 31, 2010.

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Cost Accounting: Creating the balance sheet
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