Question

Prepare the balance sheet. rofit and owner's equity and El.17 (LO 6) AP Judy Cumby is the sole owner of Deer Park, a public camping ground near Gros Morne National Park. Judy has gathered the following financial information for the year ended March 31, 2021: ance sheet. $150,000 Revenues-general store Revenues-camping fees Operating expenses Súpplies on hand Fair value of equipment Accounts payable Accounts receivable $ 40,000 150,000 Cash on hand 2,500 Original cost of equipment 125,000 Notes payable 11,500 J. Cumby, capital, April 1, 2020 21,000 J. Cumby, drawings 10,000 Insurance paid for in advance for April to June 2021 9,400 110,000 70,000 17,000 5,000 Camping fees collected for April 600 Instructions a. Calculate Deer Park's profit for the year. b. Calculate Judy's owner's equity for the period as at March 31, 2021. c. Prepare a balance sheet at March 31, 2021.

Answer 1

SOLUTION: A
	JUDY CUMBY
	INCOME STATEMENT
	Revenue :
	Revenue - Camping Fees	$           1,50,000
	Revenue - General Stores	$               40,000
	Total Revenue		$          1,90,000
	Less: Operating Expenses		$          1,50,000
	Net Income		$             40,000
SOLUTION: B
	JUDY CUMBY
	Owner's Equity Statement
	PARTICULARS	AMOUNT
	Beginning Capital	$               17,000
	Add: Net Income of the year	$               40,000
	Total	$               57,000
	Less: Drawing made duing year	$                 5,000
	Owner's Equity at end	$               52,000
SOLUTION: C
	BALANCE SHEET
				LIABILITIES & OWNER'S EQUITY
	ASSETS	AMOUNT	AMOUNT	CURRENT LIABILITIES:	AMOUNT	AMOUNT
				Account Payable	$         11,500
	CURRENT ASSETS:			Notes Payable	$         70,000
	Cash	$                 9,400		Camping fees collected for April	$         10,000
	Account Receivable	$               21,000				$                 91,500
	Supplies on hand	$                 2,500
	Prepaid insurance paid	$                     600
			$             33,500
	FIXED ASSETS:			OWNER'S EQUITY
	Equipment		$          1,10,000	J. Cumby Capital		$                 52,000
	TOTAL OF ASSETS		$          1,43,500	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY		$             1,43,500