Question

Problem 1-3A Prepare financial statements (LO1-3) Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, the company reports the following amounts: Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,300 Service revenue 24,000 cost of goods sold (food expense) 3,400 Buildings 1,600 Supplies 4,500 Salaries payable $62,700 52,400 30,000 2,400 900 In addition, the company had common stock of $30,000 at the beginning of the year and issued an additional $3,000 during the year. The company also had retained earnings of $16,200 at the beginning of the year. Required: 1. Prepare the income statement for Longhorn Corporation. 2. Prepare the statement of stockholders' equity for Longhorn Corporation. 3. Prepare the balance sheet for Longhorn Corporation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the statement of stockholders' equity for Longhorn Corporation. LONGHORN CORPORATION Statement of Stockholders' Equity For the year ended Dec. 31, 2021 Common Stock Retained Earnings Total Stockholders Equity Beginning balance Ending balance Required 1 Required 3 >

Answer 1

62700 LONGHORN CORPORATION Income Statement For the year Ended December 31, 2021 Service Revenue Expenses: Cost of goods sold 52400 Salaries expense 4500 Delivery expenses 1600 Total Expenses Net Income 58500 4200 LONGHORN CORPORATION Statement of Stockholders Equity For the year Ended December 31, 2021 Common Retained Total Stockholders' stock Earnings Equity Beginning balance 30000 16200 46200 Issued additional capital 3000 3000 Net Income 4200 4200 Ending Balance 33000 20400 53400