Reference no: EM131816232

Question - Prepare a correct balance sheet

Deer Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2008.

Revenues during 2008-camping fees $140,000    Notes payable $ 60,000

Revenues during 2008-general store 50,000        Expenses during 2008 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 2008.

(b) Prepare a balance sheet for Deer Park as of December 31, 2008.