Question - Prepare a correct balance sheet
Deer Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2008.
Revenues during 2008-camping fees $140,000 Notes payable $ 60,000
Revenues during 2008-general store 50,000 Expenses during 2008 150,000
Accounts payable 11,000 Supplies on hand 2,500
Cash on hand 23,000 Common stock 20,000
Original cost of equipment 105,500 Retained earnings ?
Market value of equipment 140,000
Instructions
(a) Determine Deer Park's net income for 2008.
(b) Prepare a balance sheet for Deer Park as of December 31, 2008.