Longhom Corporation provides lowcost food delivery services

Longhom Corporation provides low-cost food delivery services to senior cizens Ai the end of the year, the company reports the folowing amounts 66,200 3,100 7,000 3,100 700 1,200 Service reverue 27,500 Cost of goods sold (food expense) Accounis payable Delivery expense Salaries expense 100 Buidings 2,300 Supplies ,200 Salaries payable stock of $37,000 at the beginning of the year and issued an addtional $3,700 during the year. The company eamings of $17,700 at tne also had retained eamings of $17,700 at the beginning of the year In addition, the company had common Required: 1. Prepere the inoome statement for Longhomc Expenses

Solution

INCOME STATEMENT PARTICULARS AMOUNT Service Revenue $                    66,200 Less : Cost of Goods Sold $                    53,100 Gross Revenue $                    13,100 Less : Other Expenses Delivery Expenses $                      2,300 Salaries Expenses $                      5,200 Net Revenue $                      5,600 STATEMENT OF RETAINED EARNINGS Beginning Balance = $                    17,700 Add: Profit of the year = $                      5,600 Less: Dividends $                             -   Closing balance of the retained earning $                    23,300 BALANCE SHEET ASSETS AMOUNT LIABILITIES AMOUNT FIXED ASSETS CURRENT LIABILITIES Equipment $                    27,500 Account Payable $                          4,100 Building $                    37,000 Salary Payable $                             700 TOTAL FIXED ASSETS (A) $                    64,500 TOTAL CURRENT LIABILITIES $                          4,800 CURRENT ASSETS Account Receivable Cash $                      1,200 OWNER\'S EQUITY Supplies $                      3,100 Common Stock $                       40,700 ($ 37,000 + $ 3700) Retained Earning $                       23,300 TOTAL CURRENT ASSETS(B) $                      4,300 TOTAL OWNER\'S EQUITY (B) $                       64,000 TOTAL ASSETS (A + B) $                    68,800 TOTAL LIABILITIES AND OWNERS EQUITY (A +B) $                       68,800