Problem 6-25 Accounting for depreciation over multiple accounting cycles: straight-line depreciation LO 6-2, 6-5

Bensen Company began operations when it acquired $24,900 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $24,900 that had a $4,500 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 $3,500 cash. Bensen uses straight-line depreciation.

	2018	2019	2020	2021	2022
Revenue	$7,970	$8,470	$8,670	$7,470	$0

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	2020	2021	2022
	0	0	0	0	0
Gain/(Loss)
Net income/(loss)	$0	$0	$0	$0	$0
Satement of Changes in Stockholders' Equity
	0	0	0	0	0
Net income/(loss)
	0	0	0	0	0
Total stockholder's equity	$0	$0	$0	$0	$0
Balance Sheet
Assets
Total assets	$0	$0	$0	$0	$0
Stockholder's Equity
Total stockholder's equity	$0	$0	$0	$0	$0
Statement of Cash Flows
Operating activities:
Net cash flow from operating activities	0	0	0	0	0
Investing activities:
Net cash investing activities	0	0	0	0	0
Financing activities:
Net cash flow from financing activities	0	0	0	0	0
Net change in cash	0	0	0	0	0
Ending cash balance	$0	$0	$0	$0	$0