Problem $8-28$A $($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.