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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 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) Complete the balance sheet for Deer Park as of December 31, 2010. (List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.) Deer PARK Balance Sheet December 31, 2010For the year ended December 31, 2010 Assets Accounts payableExpensesCamping revenuesStore revenuesJan Nab,CapitalCashSuppliesEquipmentNotes payable $ SuppliesAccounts payableJan Nab,CapitalCashCamping revenuesStore revenuesExpensesEquipmentNotes payable Store revenuesEquipmentCashCamping revenuesSuppliesExpensesNotes payableAccounts payableJan Nab,Capital Total assets $ Liabilities and Owner's Equity Liabilities ExpensesAccounts payableStore revenuesJan Nab,CapitalSuppliesNotes payableCamping revenuesCashEquipment $ SuppliesEquipmentNotes payableStore revenuesExpensesAccounts payableCashJan Nab,CapitalCamping revenues Total Liabilities Owner's equity EquipmentExpensesCamping revenuesStore revenuesJan Nab,CapitalCashSuppliesNotes payableAccounts payable Total liabilities and owner's equity $
Started by qgregory ( Peirce College )
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Net income from Deer Park for 2010 is calculated by subtracting total expenses from total revenues. The total revenues include camping fees, general store revenues, and market value of equipment. The total expenses include expenses during 2010 and the original cost of equipment. Net income = Total revenues - Total expenses = (140,000 + 50,000 + 140,000) - (150,000 + 105,500) = $134,500 The balance sheet for Deer Park as of December 31, 2010 would include assets and liabilities. Assets are listed in order of liquidity and liabilities from largest to smallest. The assets include cash on hand, supplies on hand, accounts payable, notes payable, equipment, camping fees, store revenues and original cost of equipment. The liabilities include expenses during 2010, accounts payable, store revenues, Jan Nab's capital, supplies, notes payable, camping fees and cash. Total assets = Cash on hand + Supplies on hand + Accounts payable + Notes payable + Equipment + Camping fees + Store revenues + Original cost of equipment = $23,000 + 2,500 + 11,000 + 60,000 + 140,000 + 140,000 + 50,000 + 105,500 = $532,000 Total liabilities and owner's equity = Expenses during 2010 +

Answered by wshaffer

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