Question

Crane Lakes Park is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2022.
Service revenue (from camping fees) $139,400
Dividends $11,340
Sales revenue (from general store) 30,600
Notes payable 63,000
Accounts payable 13,860
Expenses during 2022 130,940
Cash 10,710
Supplies 6,930
Equipment 143,640
Common stock 50,400
Retained earnings (1/1/2022) 6,300

Required:
Determine Crane Lakes Park's net income for 2022.

Answer 1

Answer:

The net income is $39,060

Explanation:

The computation of the net income is shown below:

As we know that

net income = Sales revenue - expenses

where,

Sales revenue is

= Camping fees revenues + general store revenues

= $139,400 + $30,600

= 170,000

And, the expenses is $130,940

So, the net income is

= $170,000 - $130,940

= $39,060

hence, the net income is $39,060