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 Equipment Accounts payable Delivery expense Salaries expense $ 1,400 Service revenue 28,000 Cost of goods sold (food expense) 4,200 Buildings 2,400 Supplies 5,300 Salaries payable $66,709 53,200 38,000 3,200 800 In addition, the company had common stock of $38,000 at the beginning of the year and issued an additional $3,800 during the year. The company also had retained earnings of $18,000 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 Somplete this question by entering your answers in the tabs below.

Answer 1

1.

Income Statement
Service revenue	66,700
Expenses:
Cost of goods sold	-53,200
Salaries expense	-5,300
Delivery expense	-2,400
Net Income	$5,800

2.

Statement of Stockholders Equity

	Common Stock	Retained Earnings	Total
Beginning balance	38,000	18,000	56,000
Additional Issue of Stock	3,800	0	3,800
Net Income	0	5,800	5,800
Ending Balance	41,800	23,800	65,600

3.

Balance Sheet

Assets	$	Liabilities + Stockholders Equity	$
Current Assets:		Current Liabilities:
Cash	1,400	Accounts payable	4,200
Supplies	3,200	Salaries payable	800
Total Current Assets	$4,600	Total Current Liabilities	$5,000
Plant Assets:		Stockholders Equity	65,600
Building	38,000
Equipment	28,000
Total Plant Assets	$66,000
Total Assets	$70,600	Total Liabilities and Stockholders Equity	$70,600

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