Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $27,500 that had a $3,500 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 $4,090 cash. Bensen uses straight-line depreciation. Revenue Income Statement Year 1 $7,750 Assets 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. Stmt of Changes in Stkholders Eq Complete this question by entering your answers in the tabs below. Total assets Stockholders' Equity Year 2 $8,250 Total stockholders' equity Balance Sheet Year 3 $8,450 Prepare the balance sheets for each of the five years. Present the statements in the form of a vertical statements model. (Amounts be deducted should be indicated by a minus sign.) Show Transcribed Text $ $ Statement of Cash Flows Year 4 $7,250 BENSEN COMPANY Balance Sheet As of December 31 Year 2 Year 1 0 $ Year 5 $0 0 $ < Stmt of Changes in Stkholders Eq 0 $ 0 $ Year 3 0 $ 0 $ Year 4 0 $ 0 $ Statement of Cash Flows > Year 5 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Aa54.

Balance sheet......

Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January 1, Year 1. The
cash acquired was immediately used to purchase equipment for $27,500 that had a $3,500 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 $4,090 cash. Bensen
uses straight-line depreciation.
Revenue
Income
Statement
Year 1
$7,750
Assets
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.
Stmt of
Changes in
Stkholders Eq
Complete this question by entering your answers in the tabs below.
Total assets
Stockholders' Equity
Year 2
$8,250
Total stockholders' equity
Balance Sheet
Year 3
$8,450
Prepare the balance sheets for each of the five years. Present the statements in the form of a vertical statements model. (Amounts
be deducted should be indicated by a minus sign.)
Show Transcribed Text
$
$
Statement of
Cash Flows
Year 4
$7,250
BENSEN COMPANY
Balance Sheet
As of December 31
Year 2
Year 1
0 $
Year 5
$0
0 $
< Stmt of Changes in Stkholders Eq
0 $
0 $
Year 3
0 $
0
$
Year 4
0
$
0 $
Statement of Cash Flows >
Year 5
0
0

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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