Deer Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2011.
|
Revenues during 2011—camping fees |
$140,000 |
Notes payable |
$ 60,000 |
|
Revenues during 2011—general store |
50,000 |
Expenses during 2011 |
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 2011.
(b) Prepare a balance sheet for Deer Park as of December 31, 2011.