Jan Nab is the sole owner of Deer Park, a public camping ground near the Lake Mead National Recreation Area. Jan has compiled the following financial information as of December 31, 2010.
|
Revenues during 2010—camping fees |
$140,000 |
Market value of equipment |
$140,000 |
|
Revenues during 2010—general store |
50,000 |
Notes payable |
60,000 |
|
Accounts payable |
11,000 |
Expenses during 2010 |
150,000 |
|
Cash on hand |
23,000 |
Supplies on hand |
2,500 |
|
Original cost of equipment |
105,500 |
Instructions
(a) Determine Jan Nab’s net income from Deer Park for 2010.
(b) Prepare a balance sheet for Deer Park as of December 31, 2010.