[The following information applies to the questions displayed below.] The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. Year 1

Acquired $73,000 cash from the issue of common stock.

Purchased a used wrecker for $35,000 cash. It has an estimated useful life of three years and a $6,000 salvage value.

Paid sales tax on the wrecker of $4,000.

Collected $59,100 in towing fees.

Paid $12,300 for gasoline and oil.

Recorded straight-line depreciation on the wrecker for Year 1.

Closed the revenue and expense accounts to Retained Earnings at the end of Year 1.

Year 2

Paid for a tune-up for the wreckers engine, $1,200.

Bought four new tires, $1,550.

Collected $65,000 in towing fees.

Paid $18,300 for gasoline and oil.

Recorded straight-line depreciation for Year 2.

Closed the revenue and expense accounts to Retained Earnings at the end of Year 2.

Year 3

Paid to overhaul the wreckers engine, $5,100, which extended the life of the wrecker to a total of four years. The salvage value did not change.

Paid for gasoline and oil, $19,400.

Collected $68,000 in towing fees.

Recorded straight-line depreciation for Year 3.

Closed the revenue and expense accounts at the end of Year 3.

Required

A. For Year 1, Year 2, & Year 3 Record the transactions in the General Journal.