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 $ 1,200 Service revenue 21,000 Cost of goods sold (food expense) 2,800 Buildings 3,200 Supplies 6,100 Salaries payable $70,700 54,000 24,000 1,800 800 In addition, the company had common stock of $24,000 at the beginning of the year and issued an additional $2,400 during the year. The company also had retained earnings of $10,600 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.

Answer 1

Required 1

LONGHORN CORPORATION
Income statement
For the year ended Dec. 31, 2021
Service revenue	$70,700
Total revenue		$70,700	(a)
Expenses:
Cost of goods sold (food expense)	$54,000
Delivery expense	$3,200
Salaries expense	$6,100
Total expenses		$63,300	(b)
Net income		$7,400	(c=a-b)

Required 2

LONGHORN CORPORATION
Statement of Stockholders` Equity
For the year ended Dec. 31, 2021
	Common stock	Retained earnings	Total Stockholders` Equity
Beginning balance	$24,000	$10,600	$34,600
Issued during the year	$2,400		$2,400
Net income during the year		$7,400	$7,400
Ending balance	$26,400	$18,000	$44,400

Required 3

LONGHORN CORPORATION
Balance Sheet
Dec. 31, 2021
Assets	Liabilities
Non current assets		Current liabilities
Equipment	$21,000	Salaries payable	$800
Building	$24,000	Accounts payable	$2,800
		Total liabilities	$3,600
Current assets
Cash	$1,200	Stockholders` Equity
Supplies	$1,800	Common stock	$26,400
		Retained earnings	$18,000
		Total stockholders` equity	$44,400
Total assets	$48,000	Total liabilities and stockholders` equity	$48,000