Deer Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2011.
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Revenues during 2011-camping fees
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$140,000
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Notes payable
|
$ 60,000
|
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Revenues during 2011-general store
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50,000
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Expenses during 2011
|
150,000
|
|
Accounts payable
|
11,000
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Supplies on hand
|
2,500
|
|
Cash on hand
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23,000
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Common stock
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20,000
|
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Original cost of equipment
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105,500
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Retained earnings
|
?
|
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Market value of equipment
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140,000
|
|
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Instructions
(a) Determine Deer Park's net income for 2011.
(b) Prepare a balance sheet for Deer Park as of December 31, 2011.