Answer:
(a) $40,000
(b) See explanation below
Explanation:
(a) Net Income for 2019
Revenues during 2019 Camping fees = $140,000
Revenues during 2019 General store 50,000
Expense during 2019 $150,000
Net Income = Total Revenue - Expenses
Net Income = $140,000 + $50,000 - $150,000
Net Income = $40,000
(b) Prepare a balance sheet
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .$. 23,000
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,500
Equipment . . . . . . . . . . . . . . . . . . . . . . . . .140,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$165,500
Liabilities
Accounts Payable . . . . . . . . . . . . . . . . . . . . 11,000
Notes Payable . . . . . . . . . . .. . . . . . . . . . . . 60,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71,000
Stockholders' Equity
Common Stock . . . . . . . . . . . . . . . . . . . . . . 20,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . 74,500
Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . .94,500
Total Liabilities and Stockholders' Equity . . . . . . . . . . . . . . . . . . .$165,500
Liabilities + Equity
