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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:
Prepare the income statement for Longhorn Corporation.

Respuesta :

anthougo

The preparation of the income statement for Longhorn Corporation for the year ended December 31, 2021, is as follows:

Longhorn Corporation

Income Statement

For the year ended December 31, 2021

Service revenue                             $ 65,700

Cost of goods sold (food expense) 53,000

Gross profit                                      $12,700

Delivery expense     $2,200

Salaries expense        5,100            $7,300

Net Income                                     $5,400

What is the income statement?

The income statement also called income summary is a financial statement that shows the financial performance of a business for a defined financial period.

Thus, from the income statement, the net income and the gross profit, which represent the gains achieved by the entity, are derived.

Learn more about the income statement at https://brainly.com/question/24498019

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