Question

- sheet. prepare balance sheet E1.17 (LO6) AP Judy Cumby is the sole owner of Deer Park, a public camping ground near Gros More National Park. Judy has gathered the following financial information for the year ended March 31, 2021: Revenues-camping fees $150,000 Revenues-general store $ 40,000 Operating expenses 150,000 Cash on hand 9.400 Supplies on hand 2,500 Original cost of equipment 110,000 Fair value of equipment 125,000 Notes payable 70,000 Accounts payable 11,500 J. Cumby, capital, April 1, 2020 17.000 Accounts receivable 21,000 J. Cumby, drawings 5.000 Camping fees collected for April 10,000 Insurance paid for in advance for April to June 2021 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

Answer-1-

( A )	CALCULATE DEER PARK'S PROFIT FOR THE YEAR MARCH 31,2021 :
	PARTICULARS :	AMOUNTS ($ )
	REVENUES:
	revenues- camping fees	$ 150,000
	revenues - general store	$ 40,000
	total revenues	$ 190,000
	less : operating expenses	( $ 150,000)
	net profit	$ 40,000
(B)	CALCULATE JUDY'S OWNER'S EQUITY FOR THE PERIOD AS AT MARCH 31,2021:
	PARTICULARS :	AMOUNTS ($ )
	J.Cumby , capital ( april 1 ,2020 )	$ 17,000
	add: net profit ( see Above ( A ) )	$ 40,000
		$ 57,000
	less: J. Cumby , drawings	( $ 5,000)
	J.Cumby , capital ( March31 ,2021 )	$ 52,000
( C )	PREPARE BALANCE SHEET AT MARCH 31,2021 :
	DEER PARK'S
	BALANCE SHEET
	AS ON MARCH 31,2021
	ACCOUNTS :	AMOUNT ( $)	AMOUNT ( $)
	ASSETS :
	currents assets :
	cash on hand	$ 9,400
	prepaid insurance ( insurance paid in advance )	$ 600
	supplies on hand	$ 2,500
	accounts receivable	$ 21,000
	total currents assets		$ 33,500
	plant , property and equipment :
	equipment ( at cost )		$ 110,000
	TOTAL ASSETS		$ 143,500
	LIABILITIES :
	current liabilities :
	advance fee ( camping fees collected for April )	$ 10,000
	accounts payable	$ 11,500
	total current liabilities		$ 21,500
	long term liabilities :
	notes payable ( assumed amount due more than one year)		$ 70,000
	total liabilities		$ 91,500
	owner's equity :
	J.Cumby , capital ( March31 ,2021 ) ( see above ( B))		$ 52,000
	total liabilities and owner's equity		$143,500

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