Bensen Company started business by acquiring $27,200 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $27,200 that had a $3,200 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 $3,790 cash. Bensen uses straight-line depreciation. Year 1 Revenue $ 7,870 Year 2 $ 8,370 Year 3 $ 8,570 Year 4 $ 7,370 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.
Bensen Company started business by acquiring $27,200 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $27,200 that had a $3,200 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 $3,790 cash. Bensen uses straight-line depreciation. Year 1 Revenue $ 7,870 Year 2 $ 8,370 Year 3 $ 8,570 Year 4 $ 7,370 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...
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