Bensen Company began operations when it acquired $60,000 cash from the issue of common stock on...

Bensen Company began operations when it acquired $60,000 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $50,000 that had a $10,000 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 $8,800 cash. Bensen uses straight-line depreciation. 2018 2019 2020 2021 2022 Revenue $ 26,100 $ 28,500 $ 32,000 $ 31,300 $ 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.)

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ekkarill92 answered 1 year ago

Bensen Company began operations when it acquired $26,800 cash from the issue of common stock on...

Bensen Company began operations when it acquired $26,800 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,800 that had a $4,400 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 $3,400 cash. Bensen uses straight-line depreciation. 2018...

Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on...

Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,500 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 $4,000 cash. Bensen uses straight-line depreciation: 2018...

Bensen Company began operations when it acquired $26,700 cash from the issue of common stock on...

Bensen Company began operations when it acquired $26,700 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,700 that had a $3,500 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 $2,300 cash. Bensen uses straight-line depreciation. 2018...

Staub Company began operations when it acquired $135,000 cash from the issue of common stock on...

Staub Company began operations when it acquired $135,000 cash from the issue of common stock on January 1, 2013. The cash acquired was immediately used to purchase equipment for $135,000 that had a $27,000 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 $13,500 cash. Staub Company uses straight-line depreciation....

1. The business was started when it acquired $51,000 cash from the issue of common stock....

1. The business was started when it acquired $51,000 cash from the issue of common stock. 2. Northwest purchased $171,000 of merchandise for cash in 2016. 3. During the year, the company sold merchandise for $199,490. The merchandise cost $109,720. Sales were made under the following terms: a. $ 45,950 Cash sales b. 142,080 Credit card sales (The credit card company charges a 1.25 percent service fee.) c. 11,460 Sales on account 4. The company collected all the amount receivable...

Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On...

Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of five years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. What is Golden's straight line rate? What is the Depreciation Expense for Year 1? What...

Golden Manufacturing Company started operations by acquiring $104,300 cash from the issue of common stock. On...

Golden Manufacturing Company started operations by acquiring $104,300 cash from the issue of common stock. On January 1, 2016, the company purchased equipment that cost $104,300 cash, had an expected useful life of six years, and had an estimated salvage value of $20,860. Golden Manufacturing earned $93,390 and $64,790 of cash revenue during 2016 and 2017, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required: Prepare income statements, balance sheets, and statements of cash flows for 2016 and 2017. Use a vertical...

Golden Manufacturing Company started operations by acquiring $79,800 cash from the issue of common stock. On...

Golden Manufacturing Company started operations by acquiring $79,800 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $79,800 cash, had an expected useful life of six years, and had an estimated salvage value of $15,960. Golden Manufacturing earned $97,270 and $63,200 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required: Prepare income statements, balance sheets, and statements of cash flows for Year 1 and...

Golden Manufacturing Company started operations by acquiring $142,000 cash from the issue of common stock. On...

Golden Manufacturing Company started operations by acquiring $142,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $132,000 cash, had an expected useful life of five years, and had an estimated salvage value of $13,200. Golden Manufacturing earned $94,700 and $68,080 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required Record the purchase in a horizontal statements model. b-1. Prepare an income statements for 2018 and 2019....

Vernon Construction Company began operations on January 1, 2019, when it acquired $14,000 cash from the...

Vernon Construction Company began operations on January 1, 2019, when it acquired $14,000 cash from the issuance of common stock. During the year, Vernon purchased $2,500 of direct raw materials and used $2,400 of the direct materials. There were 106 hours of direct labor worked at an average rate of $6 per hour paid in cash. The predetermined overhead rate was $3.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the...

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