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	$	64,700
Equipment		26,000		Cost of goods sold (food expense)		52,800
Accounts payable		3,800		Buildings		34,000
Delivery expense		2,000		Supplies		2,800
Salaries expense		4,900		Salaries payable		700

In addition, the company had common stock of $34,000 at the beginning of the year and issued an additional $3,400 during the year. The company also had retained earnings of $17,100 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.

Answer 1

Longhoon Income as on corporation Statement December 31,202) 64,700 52,800 11.900 Service Revenue Cost of good sold (food expenre) - Gross profit Expenses:- Pelievery expense salaries expense Total expense 2,000 4,900 6,900 5,00 Net Income Longhom Corporation Statement of stockholders' equity 53400 37,400 common stock cat the beginning) 934,000 Addi. Additinal issued common stent crear ending) Retained coonings (beginning | Addin Net Income 5,000 Toral stockholders' equity $17,100 22,100 هک ۲۹

Longhorn corporation Balance sheet anon December 31,202) . Assets Amount $1,200 700 26,000 cash Equipment Buildings supplies - Total Equity and liabilit Amount | Account payable | 3,800 I salaries Payable Total liabilities 4, 5oo Total stockholder 34,000 2800 equity 59500 $ 64,000 $64.000