Bensen Company started business by acquiring $26,700 cash from the issue of
common stock on January 1, Year 1. The cash acquired was immediately used to
purchase equipment for $26,700 that had a $3,100 salvage value and an expected
useful life of four years. The equipment was used to produce the following revenue
stream (assume that all revenue transactions are for cash). At the beginning of the fifth
year, the equipment was sold for $3,660 cash. Bensen uses straight-line depreciation.
Revenue
Year 1
$ 7,750
Year 2
$ 8,250
Year 3
$ 8,450
Year 4
$ 7,250
Year 5
$ 0
Required
Prepare income statements, statements of changes in stockholders' equity, balance
sheets, and statements of cash flows for each of the five years.
Complete this question by entering your answers in the tabs below.
Statement of
Income
Statement
Statement of
Changes in Balance Sheet
Cash Flows
Stockholders
Prepare the statements of changes in stockholders' equity for each of the five years.
BENSEN COMPANY
Statement of Changes in Stockholders' Equity
For the Year Ended December 31