Question

Prepare the required financial statements from the given information.

Answer 1

Longhorn Corporation
Income Statement
For the year ended December 31, 2021
Service Revenue		$68,700
Expenses:
Cost of Goods Sold	-$53,600
Delivery Expense	-$2,800
Salaries Expense	-$5,700
Total Expense		-$62,100
Net Income		$6,600

 

Longhorn Corporation
Statement of Equity
For the year ended Dec 31, 2021
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning Balance	$28,000	$13,000	$41,000
Issuance of Common Stock	$2,800		$2,800
Net Income		$6,600	$6,600
Ending Balance	$30,800	$19,600	$50,400

Longhorn Corporation
Balance Sheet
For the year ended 31 Dec, 2021
Assets		Liabilities
Cash	$1,300	Accounts Payable	$3,200
Supplies	$2,200	Salaries Payabe	$900
Building	$28,000	Total Liabilites	$4,100
Equipment	$23,000	Stockholders' Equity
		Common Stock	$30,800
		Retained Earnings	$19,600
		Total Stockholders' Equity	$50,400
Total Assets	$54,500	Total Liabilities and Stockholders' Equity	$54,500

 

Net Income: $6600

Ending Equity: $50400

Balance Sheet total: $54500