Question

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	$	1,200		Service revenue	$	63,200
Equipment		24,500		Cost of goods sold (food expense)		52,500
Accounts payable		3,500		Buildings		31,000
Delivery expense		1,700		Supplies		2,500
Salaries expense		4,600		Salaries payable		700

In addition, the company had common stock of $31,000 at the beginning of the year and issued an additional $3,100 during the year. The company also had retained earnings of $16,500 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.
   Required 1 Required 2 Required 3 Prepare the income statement for Longhorn Corporation. LONGHORN CORPORATION Income Statement For the year ended Dec. 31, 2021 Expenses: Total expenses
   

Answer 1

1) Longhorn Corporation Income Statement For the year ended December 31, 2021 Service revenue Total Revenues Expenses Cost of goods sold (food expense) Salaries expense S63,200 S63,200 S52,500 S4,600 Delivery expense Total Expenses Net Income (Loss) $1,700 $58,800 $4,400 2) Longhorn Corporation Statements of stockholder's Equity For the Month ended December 31, 2021 Total Common Retained Stockholder's Stock Earnings equity $47,500 Beginning Balance, January 1, 2021 Issued Common Stock Net Income for the period Ending Balance, December 31, 2021 $31,000 S16,500 $3,100 $3,100 $4,400 S55,000 $4,400 S34,100 $20,900

3) Longhorn Corporation Balance Sheet December 31, 2021 Assets Liabilities Cash Supplies Equipment Buildings $3,500 $1,200 Accounts Payable $2,500 Salary payable $24,500 Total liabilities $31,000 $700 $4,200 Stockholders' equity Common stock S34,100 Retained earnings $20,900 Total shareholders' equity $55,000 $59,200 Total Assets $59,200 Total Liabilities & Stockholders' equity