Question

In: Accounting

Patricia Johnson is the sole owner of Crane Vista Park, a public camping ground near the...

Patricia Johnson is the sole owner of Crane Vista Park, a public camping ground near the Crater Lake National Recreation Area. Patricia has compiled the following financial information as of December 31, 2020. Revenues during 2020—camping fees $186,228 Fair value of equipment $186,228 Revenues during 2020—general store 86,463 Notes payable 79,812 Accounts payable 14,632 Expenses during 2020 199,530 Cash on hand 30,595 Accounts receivable 23,278 Original cost of equipment 140,336 (a) Determine Patricia Johnson’s net income from Crane Vista Park for 2020. Net income $enter Net income in dollars (b) Prepare a balance sheet for Crane Vista Park as of December 31, 2020. (List Assets in order of liquidity.) CRANE VISTA PARK Balance Sheet choose the accounting period Assets enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a closing section name for this part of the balance sheet $enter a total amount for this part of the balance sheet Liabilities and Owner’s Equity select an opening name for section one enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount select a closing name for section one enter a total amount for this section of the balance sheet select an opening name for section two enter a balance sheet item enter a dollar amount select a closing name for this part of the balance sheet $enter a total amount for this part of the balance sheet

Solutions

Expert Solution

a)Net Income =Revenue -camping fees+ Revenue -general store - expenses

                = 186228 + 86463 - 199530

                = 73161

b)

Crane Vista Park

Balance sheet

as of December 31, 2020

Assets
Current asset
cash 30595
Accounts receivable 23278
Total current asset 53873
Equipment 140336
Total assets 194209
liabilities and stockholders equity
Current liabilities
Accounts payable 14632
Long term liabilities 79812
Total liabilities 94444
Owners equity (Balancing figure) 99765
Total liabilities and owners equity 194209

#

Owners equity =Total asset -total liabilities

             = 194209 - 94444

             = 99765


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