Problem 8-33A (Algo) Continuing expenditures with statements model LO 8-2, 8-8 Tower Company owned a service truck that was purchased at the beginning of Year 1 for $41,000. It had an estimated life of three years and an estimated salvage value of $2,000. Tower Company uses straight-line depreciation. Its financial condition as of January 1 Year 3, is shown in the following financial statements model. In Year 3, Tower Company spent the following amounts on the truck January 4 Overhauled the engine for $6,900. The estimated life was extended one additional year, and the salvage value was revised to $1,000. July 6 Obtained oil change and transmission service, $340. August 7 Replaced the fan belt and battery, $440.1 December 31 Purchased gasoline for the year, $8,400. December 31 Recognized Year 3 depreciation expense. Required a. Record the Year 3 transactions in a horizontal statements model. b. Prepare journal entries for the Year 3 transactions. Complete this question by entering your answers in the tabs below. Required A Required B Record the Year 3 transactions in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for Investing activity, FA for financing activity, NC for net change, or leave blank for not affected. Leave blank to indicate that angelement is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)