Reference no: EM132767292

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$1,300

Service revenue$67,200

Equipment 28,500

Cost of goods sold (food expense) 53,300

Accounts payable 4,300

Buildings 39,000

Delivery expense 2,500

Supplies 3,300

Salaries expense 5,400

Salaries payable 900

In addition, the company had common stock of $39,000 at the beginning of the year and issued an additional $3,900 during the year. The company also had retained earnings of $18,000 at the beginning of the year.

Required:

Problem 1: Prepare the income statement for Longhorn Corporation.

Problem 2: Prepare the statement of stockholders' equity for Longhorn Corporation.

Problem 3: Prepare the balance sheet for Longhorn Corporation.