Reference no: EM132472034

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                         $65,700

Equipment                                  27,000

Cost of goods sold (food expense)  53,000

Accounts payable                        4,000

Buildings                                     36,000

Delivery expense                           2,200

Supplies                                       3,000

Salaries expense                           5,100

Salaries payable                              900

In addition, the company had common stock of $36,000 at the beginning of the year and issued an additional $3,600 during the year. The company also had retained earnings of $17,400 at the beginning of the year.

Required:

Question 1: Prepare the income statement for Longhorn Corporation.

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

Question 3: Prepare the balance sheet for Longhorn Corporation.