Bensen Company began operations when it acquired $26,900 cash from the issue of common stock on January 1, 201 The cash acquired was immediately used to purchase equipment for $26,900 that had a $4,100 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 $3,100 cash. Bensen uses straight-line depreciation. 2018 $7,940 2019 $8,440 2020 $8,640 2021 $7,440 2022 $0 Revenue 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. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) BENSEN COMPANY For the Year Ended December 31 Income Statement 2018 2019 $ 7,940 $ 8,440 5,700 5,700 2,240 2,740 $ $ Revenue Depreciation expense Operating income Gain/(Loss) Net income/(loss) 2020 8,640 5,700 2,940 2021 2022 7,440 $ 0 5,7000 1,740| (1,000) 1,740 $ (1,000) - 1,740 $ 2,240 $ 2,740 $ 2,940 $ Satement of Changes in Stockholders' Equity Beginning common stock Plus: Stock issued 0 0 0 0 Net income/(loss) T T T 0 0 0 0 0 0 0 0 0 0 Total stockholder's equity $ $ $ $ $ Balance Sheet Assets Equipment Cash $ 0 $ 0 $ 0 $ 0 $ 0 Total assets Otelboldal lit. Net income/(loss) Total stockholder's equity | $ Balance Sheet Assets Equipment Cash $ 0 % 0 % 0 % 0 % 0 Total assets Stockholder's Equity Total stockholder's equity |$ $ $ Statement of Cash Flows Operating activities: Net cash flow from operating activities Investing activities: | | | Net cash investing activities Financing activities: | Net cash flow from financing activities Net change in cash | | Ending cash balance | | s s s s s Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill $ 40,400 40,400 Required a. Compute the annual amortization expense for these items. b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model shown below. Complete this question by entering your answers in the tabs below. Required A Required B Compute the annual amortization expense for these items. Patent $ 10,100 per year Bensen Company began operations when it acquired $26,900 cash from the issue of common stock on January 1, 201 The cash acquired was immediately used to purchase equipment for $26,900 that had a $4,100 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 $3,100 cash. Bensen uses straight-line depreciation. 2018 $7,940 2019 $8,440 2020 $8,640 2021 $7,440 2022 $0 Revenue 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. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) BENSEN COMPANY For the Year Ended December 31 Income Statement 2018 2019 $ 7,940 $ 8,440 5,700 5,700 2,240 2,740 $ $ Revenue Depreciation expense Operating income Gain/(Loss) Net income/(loss) 2020 8,640 5,700 2,940 2021 2022 7,440 $ 0 5,7000 1,740| (1,000) 1,740 $ (1,000) - 1,740 $ 2,240 $ 2,740 $ 2,940 $ Satement of Changes in Stockholders' Equity Beginning common stock Plus: Stock issued 0 0 0 0 Net income/(loss) T T T 0 0 0 0 0 0 0 0 0 0 Total stockholder's equity $ $ $ $ $ Balance Sheet Assets Equipment Cash $ 0 $ 0 $ 0 $ 0 $ 0 Total assets Otelboldal lit. Net income/(loss) Total stockholder's equity | $ Balance Sheet Assets Equipment Cash $ 0 % 0 % 0 % 0 % 0 Total assets Stockholder's Equity Total stockholder's equity |$ $ $ Statement of Cash Flows Operating activities: Net cash flow from operating activities Investing activities: | | | Net cash investing activities Financing activities: | Net cash flow from financing activities Net change in cash | | Ending cash balance | | s s s s s Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill $ 40,400 40,400 Required a. Compute the annual amortization expense for these items. b. Record the acquisition of the intangible assets and the related amortization expense for year 1 in a horizontal statements model shown below. Complete this question by entering your answers in the tabs below. Required A Required B Compute the annual amortization expense for these items. Patent $ 10,100 per year
