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.