3 Tower Company owned a service truck that was purchased at the beginning of Year 1 for $32,000. It had an estimated life of three years and an estimated salvage value of $5,000. Tower Company uses straight-line depreciation. In Year 3, Tower Company spent the following amounts on the truck: 20 points X Jan. 4 Overhauled the engine for $6,100. The estimated life was extended one additional year, and the salvage value was revised to $4,000. July 6 obtained oil change and transmission service, $260. Aug 7 Replaced the fan belt and battery, $360. Dec. 31 Purchased gasoline for the year, $7,600. Dec. 31 Recognized Year 3 depreciation expense. 02:33:08 Required Record the Year 3 transactions in a statements model. (In the Statement of Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Round your answers to the nearest dollar amount.) TOWER COMPANY Horizontal Statements Model for Year 3 Balance Sheet Income Statement Assets Stockholders' Equity Date Statement of Cash Flows Common Revenue Expense Net Income Cash + Book Value of Truck Stock Retained Earnings Balance 10,000+ 14,000 = 6,100 = 1/4 01 + 01 + + 25,000 0 (260) 7/6 21,000 + (6,100) + (260) + (360) + (7,600) + 0+ 0 + 6,680 + 01 = 0 = 8/7 0 + 0 0 (260) (360) (7.600) - 01 - 01 - 0 - 0 0 - 0 - 0- 0 0- 0 = 0 260 = 360 = 7,800 = 9,000 = 17,220 = 12/31 01 = (360) (7.600) (9,000) 7,780 + (260) () (360) (7.600) (9,000) (17,220) . 12/31 Total 9,000 = = 29.100 = 0 0 + 10,000+ (8,220) NC m 3 Tower Company owned a service truck that was purchased at the beginning of Year 1 for $32,000. It had an estimated life of three years and an estimated salvage value of $5,000. Tower Company uses straight-line depreciation. In Year 3, Tower Company spent the following amounts on the truck: 20 points X Jan. 4 Overhauled the engine for $6,100. The estimated life was extended one additional year, and the salvage value was revised to $4,000. July 6 obtained oil change and transmission service, $260. Aug 7 Replaced the fan belt and battery, $360. Dec. 31 Purchased gasoline for the year, $7,600. Dec. 31 Recognized Year 3 depreciation expense. 02:33:08 Required Record the Year 3 transactions in a statements model. (In the Statement of Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Round your answers to the nearest dollar amount.) TOWER COMPANY Horizontal Statements Model for Year 3 Balance Sheet Income Statement Assets Stockholders' Equity Date Statement of Cash Flows Common Revenue Expense Net Income Cash + Book Value of Truck Stock Retained Earnings Balance 10,000+ 14,000 = 6,100 = 1/4 01 + 01 + + 25,000 0 (260) 7/6 21,000 + (6,100) + (260) + (360) + (7,600) + 0+ 0 + 6,680 + 01 = 0 = 8/7 0 + 0 0 (260) (360) (7.600) - 01 - 01 - 0 - 0 0 - 0 - 0- 0 0- 0 = 0 260 = 360 = 7,800 = 9,000 = 17,220 = 12/31 01 = (360) (7.600) (9,000) 7,780 + (260) () (360) (7.600) (9,000) (17,220) . 12/31 Total 9,000 = = 29.100 = 0 0 + 10,000+ (8,220) NC m