Question

Cullumber is a private camping ground near the Boulder Peak Recreation Area. It has compiled the following financial information as of December 31, 2022.

Services revenues (from camping fees) $130,500 Dividends $7,100
Sales revenues (from general store) 33,000 Notes payable 62,000
Accounts payable 12,400 Administrative expenses 141,400
Cash 14,300 Supplies 2,500
Equipment 109,000 Common stock 32,000
Retained earnings (1/1/2022) 4,400

Required:
Determine Cullumber Lakes Park’s net income for 2022.

Answer 1

Answer:

the net income is $22,100

Explanation:

The computation of the net income is shown below:

= Services revenues (from camping fees)  + Sales revenues (from general store) - Administrative expenses

= $130,500 + $33,000 - $141,400

= $22,100

hence, the net income is $22,100

We simply deduct the expenses from the sales revenues