Help Save Exit Subm Check my work 17 Year 1 Part 2 of 2 1.31 Don 1. Acquired $70,000 cash from the issue of common stock 2. Purchased a used wrecker for $32,000 cash. It has an estimated useful life of three years and a $5,000 salvage value 3. Paid sales tax on the wrecker of $3.000. 4. Collected $56,100 in towing fees 5. Paid $12,000 for gasoline and oll 6. Recorded straight-line depreciation on the wrecker for Year 1 7. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1, Year 2 1. Paid for a tune-up for the wrecker's engine $900. 2. Bought four new tires, $1250 3. Collected $62.000 in towing fees 4. Paid $18,000 for gasoline and oil. 5. Recorded straight line depreciation for Year 2 6. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2 Year 3 1. Paid to overhaul the wrecker's engine, 54,800, which extended the life of the wrecker to a total of four years. The Salvage value did not change 2. Paid for gasoline and oil 519100 3. Collected $65.000 in towing fees 4. Recorded straight line depreciation for Year 3. 5. Closed the revenue and expense accounts at the end of Year 3