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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.)

    DEER PARK Balance Sheet

    Total assets

    Liabilities and Owner's Equity

    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.