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Balance Sheet and Revenue

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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
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

Jan Nab began business on January 1, 2010, with an investment of $20,000.

(a) Determine Jan Nab's net income from Deer Park for 2010.
(b) Complete the balance sheet for Deer Park as of December 31, 2010. (List assets in order of liquidity and liabilities from largest to smallest, e.g. 10, 5, 3, 2.)

Format:
DEER PARK Balance Sheet

Assets
$
Total assets

Liabilities and Owner's Equity

Liabilities
$
Total Liabilities
Owner's equity

Total liabilities and owner's equity
$

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Solution Summary

This solution looks at revenue and expenses and translates this relationship to the Balance Sheet. Based on investment it looks at what net income would be and completes the balance sheet.

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