Question

E1-14 Bear Park, a public camping ground near the Lake Mead National Recreation Area, has compiled the following fi nancial information as of December 31, 2014.

Revenues during 2014—camping fees $140,000

Notes payable $ 60,000

Revenues during 2014—general store 47,000

Expenses during 2014 150,000

Accounts payable 11,000

Supplies on hand 2,500

Cash on hand 20,000

Common stock 20,000

Original cost of equipment 105,500

Retained earnings ?

Fair value of equipment 140,000

Instructions (a) Determine Bear Park’s net income for 2014. (b) Prepare a balance sheet for Bear Park as of December 31, 2014.

Answer 1

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