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Bensen Company began operations when it acquired $ 2 7 , 5 0 0 cash from the issue of common stock on January 1 ,

Bensen Company began operations when it acquired $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 $4,300 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,750 cash. Bensen uses straight-line depreciation.
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $ 7,500 $ 8,000 $ 8,200 $ 7,000 $ 0
Required
Prepare income statements, statements of changes in stockholders equity, balance sheets, and statements of cash flows for each of the five years.

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