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Problem 8 - 2 8 A ( Algo ) Accounting for depreciation over multiple accounting cycles: straight - line depreciation LO 8 - 2 ,

Problem 8-28A (Algo) Accounting for depreciation over multiple accounting cycles: straight-line
depreciation LO 8-2,8-5
Bensen Company started business by acquiring $26,900 cash from the issue of common stock on January 1, Year 1. The cash acquired
was immediately used to purchase equipment for $26,900 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 that all revenue transactions are for cash). At the
beginning of the fifth year, the equipment was sold for $4,950 cash. Bensen uses straight-line depreciation.
Required
Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of
the five years.
Complete this question by entering your answers in the tabs below.
Income
Statement
Statement of
Changes in
Stockholders
Statement of
Cash Flows
Prepare income statements for each of the five years.
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