Jan Nab is the sole owner of Deer Park, a public camping ground near the Lake Me

Question

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 Jan Nab began business on January 1, 2010, with an investment of $20,000. Determine Jan Nab's net income from Deer Park for 2010. 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.)

Explanation / Answer

a) Determine Jan Nab's net income from Deer Park fro 2010
           $40,000
$140,000 + $50,000 - $150,000 = $40,000

b)
Assets
Cash on hand                                 $23,000
Supplies on hand                            $2,500
Equipment                                   $105,500
Total assets                                 $131,000

Liabilities and Owner’s Equity
Liabilities $11,000 + $60,000               $71,000
Owner’s Equity $20,000 + $40,000       $60,000
Total Liabilities and Owner’s Equity   $131,000

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