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
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
Revenue:-
Year 1 -$7960
Year 2 -$8460
Year 3 -$8660
Year 4 -$7460
Year 5 - $0
Required
Prepare income statements, statements of changes in
Step by step
Solved in 2 steps with 10 images
