Sunday, 22 July 2012


Exercise 1-14

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 2008.  
(b) Complete the balance sheet for Deer Park as of December 31, 2008. (List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.)  

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