Question

LUU J UUMI, Jan 9, 2020, 06:13 PM America/New York-05:00) Question 6 View Policies Current Attempt in Progress Mary Smith is the sole owner of Blossom Vista Park, a public camping ground near the Crater Lake National Recreation Area. Mary has compiled the following financial information as of December 31, 2020. Revenues during 2020-camping fees $154,000 Revenues during 2020-general store 71,500 Fair value of equipment $154,000 Notes payable 66,000 Expenses during 2020 165,000 Accounts payable 12.100 Cash on hand 25.300 Accounts receivable 19,250 Original cost of equipment 116.050 (a) Determine Mary Smith's net income from Blossom Vista Park for 2020. Net income 5 (b) Prepare a balance sheet for Blossom Vista Park as of December 31, 2020. (List Assets in order of liquidity BLOSSOM VISTA PARK Balance Sheet

Determine the net income and prepare a balance sheet

Answer 1

(a). Determination of Net Income: A Revenue From Camping Fees Revenue From General Store Total Revenue Less: Expenses: Total Expenses during the period Net Income 154,000.00 71,500.00 225,500.00 (165,000.00) 60,500.00

(b). Preparation of Balance Sheet: BLOSSOM VISTA PARK Balance Sheet as of December 31, 2020 Assets Cash on Hand Accounts Receivable Equipment (at Cost) Total Assets 25,300.00 19,250.00 116,050.00 160,600.00 A Liabilities and Owner's Equity Accounts Payable Notes Payable Owner's Equity (including net income of $60,500) Total Liabilities and Owner's Equity 12,100.00 66,000.00 A A 82,500.00 160,600.00 A Note that, Equity = Total Assets - Total Liabilities