Math  /  Data

QuestionLonghorn Corp needs financial statements: 1. Income statement, 2. Stockholders' equity, 3. Balance sheet. Given data includes cash \$1,200, service revenue \$67,700, equipment \$29,000, accounts payable \$4,400, buildings \$53,400, delivery expense \$2,600, supplies \$4,000, salaries expense \$5,500, salaries payable \$300, common stock \$40,000 (plus \$4,000 issued), retained earnings \$18,200.

Studdy Solution
Now, plug in the correct values for the assets, liabilities, and equity to check the balance sheet equation.
Assets=$155,300\text{Assets} = \$155,300Liabilities=$4,700\text{Liabilities} = \$4,700Equity=$121,000\text{Equity} = \$121,000Now, the balance sheet equation holds, and the financial statements are correct.

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