Bobby's sandwiches started business by acquiring $24700 cash from the issue of common stock on January 1 year 1 .The cash acquired was immediately used to purchase equipment for $24700 that had a $3900 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 $4480 cash. Bobby uses straight line depreciation         Revenue:-                       Year 1 -$7960                       Year 2 -$8460                       Year 3 -$8660                       Year 4 -$7460                       Year 5 - $0 Required Prepare income statements, statements of changes in stockholder's 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bobby's sandwiches started business by acquiring $24700 cash from the issue of common stock on January 1 year 1 .The cash acquired was immediately used to purchase equipment for $24700 that had a $3900 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 $4480 cash. Bobby uses straight line depreciation

        Revenue:-

                      Year 1 -$7960

                      Year 2 -$8460

                      Year 3 -$8660

                      Year 4 -$7460

                      Year 5 - $0

Required

Prepare income statements, statements of changes in stockholder's 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

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