Bensen Company began operations when it acquired $26,000 cash from the issue of common...
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Accounting
Bensen Company began operations when it acquired $26,000 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,000 that had a $4,400 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,960 cash. Bensen uses straight-line depreciation.
2018
2019
2020
2021
2022
Revenue
$7,560
$8,060
$8,260
$7,060
$0
Required
Prepare income statements, statements of changes in stockholders equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
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