Question

Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, t company reports the following amounts: Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,200 Service revenue 29,000 Cost of goods sold (food expense) 4,400 Buildings 2,600 Supplies 5,500 Salaries payable $67, 700 53,400 40,000 3,400 800 In addition, the company had common stock of $40,000 at the beginning of the year and issued an additional $4,000 during the ye The company also had retained earnings of $18,200 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 income statement for Longhorn Corporation. LONGHORN CORPORATION Income Statement For the year ended Dec 31, 2021 Total expenses

Answer 1

LONGHORN CORPORATION
Income Statement
For the year ended Dec. 31, 2021
Service Revenue		$67,700
Expenses:
Cost of Goods Sold	$53,400
Salaries Expense	$5,500
Delivery Expense	$2,600
Total expenses		$61,500
Net income                 [$67,700 - $61,500]		$6,200

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LONGHORN CORPORATION
Statement of Stockholders' Equity
For the year ended Dec. 31, 2021
	Common stock	Retained Earnings	Total Stockholders' Equity
Beginning balance	$40,000	$18,200	$58,200
Issuance of common stock	$4,000		$4,000
Add: Net Income   [Refer income statement]		$6,200	$6,200
Ending balance	$44,000	$24,400	$68,400

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LONGHORN CORPORATION
Balance Sheet
Dec. 31, 2021
Assets		Liabilities
Cash	$1,200	Accounts payable	$4,400
Supplies	$3,400	Salaries Payable	$800
Equipment	$29,000
Buildings	$40,000
		Total liabilities        [$4,400 + $800]	$5,200
		Stockholders' Equity
		Common Stock      [Refer statement of Stockholders' equity]	$44,000
		Retained Earnings [Refer statement of Stockholders' equity]	$24,400
		Total stockholders' equity    [$44,000 + $24,400]	$68,400
Total assets	$73,600	Total liabilities and stockholder's equity [$3,800 + $45,900]	$73,600