Bensen Company began operations when it acquired $26,700 cash from the issue of common stock on...

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Accounting

Bensen Company began operations when it acquired $26,700 cashfrom the issue of common stock on January 1, 2018. The cashacquired was immediately used to purchase equipment for $26,700that had a $3,500 salvage value and an expected useful life of fouryears. The equipment was used to produce the following revenuestream (assume all revenue transactions are for cash). At thebeginning of the fifth year, the equipment was sold for $2,300cash. Bensen uses straight-line depreciation.
2018 2019 2020 2021 2022
Revenue $7,880 $8,380 $8,580 $7,380 $0
Required
Prepare income statements, statements of changes instockholders’ equity, balance sheets, and statements of cash flowsfor each of the five years. Present the statements in the form of avertical statements model. (Statement of Cash Flows andBalance Sheet only: Items to be deducted must be indicated with aminus sign.)
BENSEN COMPANY
For the Year Ended December 31
Income Statement
2018 2019 2020 2021 2022
Gain/(Loss)
Net income/(loss)
Satement of Changes in Stockholders'Equity
Net income/(loss)
Total stockholder's equity
Balance Sheet
Assets
Total assets
Stockholder's Equity
Total stockholder's equity
Statement of Cash Flows
Operating activities:
Net cash flow from operatingactivities
Investing activities:
Net cash investing activities
Financing activities:
Net cash flow from financingactivities
Net change in cash
Ending cash balance

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4.2 Ratings (503 Votes)

Bensen Company For the year ended December 31 Income statement 2018 2019 2020 2021 2022 Revenue from operations 7880 8380 8580 7389 0 Less Depreciation 2670035004 5800 5800 5800 5800 0 Loss on sale of Asset 35002300 0 0 0 0 1200 Gain Loss 2080 2580 2780 1589 1200 Net Income Loss 2080 2580 2780 1589 1200 Statement of change in Stockholders equity 2018 2019 See Answer

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Transcribed Image Text

Bensen Company began operations when it acquired $26,700 cashfrom the issue of common stock on January 1, 2018. The cashacquired was immediately used to purchase equipment for $26,700that had a $3,500 salvage value and an expected useful life of fouryears. The equipment was used to produce the following revenuestream (assume all revenue transactions are for cash). At thebeginning of the fifth year, the equipment was sold for $2,300cash. Bensen uses straight-line depreciation.20182019202020212022Revenue$7,880$8,380$8,580$7,380$0RequiredPrepare income statements, statements of changes instockholders’ equity, balance sheets, and statements of cash flowsfor each of the five years. Present the statements in the form of avertical statements model. (Statement of Cash Flows andBalance Sheet only: Items to be deducted must be indicated with aminus sign.)BENSEN COMPANYFor the Year Ended December 31Income Statement20182019202020212022Gain/(Loss)Net income/(loss)Satement of Changes in Stockholders'EquityNet income/(loss)Total stockholder's equityBalance SheetAssetsTotal assetsStockholder's EquityTotal stockholder's equityStatement of Cash FlowsOperating activities:Net cash flow from operatingactivitiesInvesting activities:Net cash investing activitiesFinancing activities:Net cash flow from financingactivitiesNet change in cashEnding cash balance