Bear Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following

Question:

Bear Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following financial information as of December 31, 2014.

Revenues during 2014—camping fees ....... 140,000

Revenues during 2014—general store ....... 47,000

Accounts payable ............... 11,000

Cash on hand .................. 20,000

Original cost of equipment ............. 105,500

Fair value of equipment .............. 140,000

Notes payable .................$ 60,000

Expenses during 2014 ............. 150,000

Supplies on hand ............... 2,500

Common stock ................. 20,000

Retained earnings ................ ?

Instructions

(a) Determine Bear Park’s net income for 2014.

(b) Prepare a balance sheet for Bear Park as of December 31, 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...