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.

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Prepare the balance sheets for each of the five years.

Note: Amounts to be deducted should be indicated by a minus sign.