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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.
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