AP Otay 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) Sales revenue (from general store) Accounts payable Cash Equipment Retained earnings (1/1/2022) Instructions: $ 132,000 25,000 11,000 8,500 114,000 5,000 Dividend Notes payable Expenses during 2022 Supplies Common stock $ 9,000 50,000 126,000 5,500 40,000 a. Determine Otay Lakes Park's net income for 2022. b. Prepare a retained earnings statement and a balance sheet for Otay Lakes Park as of December 31, 2022. c. Upon seeing this income statement, Walt Jones, the campground manager, immediately concluded, "The general store is more trouble than it is worth-let's get rid of it." The marketing director isn't so sure this is a good idea. What do you think?
AP Otay 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) Sales revenue (from general store) Accounts payable Cash Equipment Retained earnings (1/1/2022) Instructions: $ 132,000 25,000 11,000 8,500 114,000 5,000 Dividend Notes payable Expenses during 2022 Supplies Common stock $ 9,000 50,000 126,000 5,500 40,000 a. Determine Otay Lakes Park's net income for 2022. b. Prepare a retained earnings statement and a balance sheet for Otay Lakes Park as of December 31, 2022. c. Upon seeing this income statement, Walt Jones, the campground manager, immediately concluded, "The general store is more trouble than it is worth-let's get rid of it." The marketing director isn't so sure this is a good idea. What do you think?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:AP Otay 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)
Sales revenue (from general
store)
Accounts payable
Cash
Equipment
Retained earnings (1/1/2022)
Instructions:
$ 132,000
25,000
11,000
8,500
114,000
5,000
Dividend
Notes payable
Expenses during 2022
Supplies
Common stock
$ 9,000
50,000
126,000
5,500
40,000
a. Determine Otay Lakes Park's net income for 2022.
b. Prepare a retained earnings statement and a balance sheet for Otay Lakes Park as of December 31, 2022.
c. Upon seeing this income statement, Walt Jones, the campground manager, immediately concluded, "The general store is
more trouble than it is worth-let's get rid of it." The marketing director isn't so sure this is a good idea. What do you
think?
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