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14 September, 10:03

Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year, the company reports the following amounts:

Cash $1,200 Service revenue $67,700 Equipment 29,000 Cost of goods sold (food expense) 53,400 Accounts payable 4,400 Buildings 40,000 Delivery expense 2,600 Supplies 3,400 Salaries expense 5,500 Salaries payable 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 year. The company also had retained earnings of $18,200 at the beginning of the year.

Required: Prepare the income statement, statement of stockholders' equity, and balance sheet for Longhorn Corporation.

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  1. 14 September, 10:05
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    The income statement, statement of stockholders' equity, and balance sheet for Longhorn Corporation is given below.

    The income statement

    Sales Revenue $ 67,700

    COGS ($ 53,400)

    Delivery expenses ($ 2,600)

    Salary expenses ($ 5,500)

    Net profit $ 6,200

    Balance Sheet

    Asset

    Cash $ 1,200

    Equipment $ 29,000

    Building $ 40,000

    Supplies $ 3,400

    Total Assets $ 73,600

    Equity

    Common Stock $ 44,000

    Retain earning $ 24,400

    (18,200 + 6,200)

    Liability

    Account Payable $ 4,400

    Salaries payable $ 8,00

    Total Liabilities $ 73,600

    Statement of Stockholders

    Opening common Stock $ 40,000

    Addition $ 4,000

    Closing common Stock $ 44,000

    Retain earning Opening $ 18,200

    Net profit $ 6,200

    Retain profit Closing $ 24,400

    Total Equity $ 68,400
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