Sleep Cheap Is a Private Camping Ground near the Boulder

Essay

Sleep Cheap is a private camping ground near the Boulder Peak Recreation Area. It has compiled the following financial information as of December 31, 2014. $$\begin{array} { l r l r } \text { Services revenues (from camping fees) } & \$ 132,000 & \text { Dividends } & \$ 8,000 \\\text { Sales revenues (from general store) } & 25,000 & \text { Notes payable } & 50,000 \\\text { Accounts payable } & 13,000 & \text { Administrative expenses } & 133,000 \\\text { Cash } & 13,500 & \text { Supplies } & 2,500 \\\text { Equipment } & 108,000 & \text { Common stock } & 40,000 \\& & \text { Retained earnings } ( 1 / 1 / 2014 ) & 5,000\end{array}$$ Instructions
(a) Determine net income from Sleep Cheap for 2014.
(b) Prepare a retained earnings statement and a balance sheet for Sleep Cheap as of December 31, 2014.