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.

2017

1.

Paid for a tune-up for the wreckers engine, $900.

2.

Bought four new tires, $1,250.

3.

Collected $62,000 in towing fees.

4.

Paid $18,000 for gasoline and oil.

5.

Recorded straight-line depreciation for 2017.

.

6.Closed the revenue and expense accounts to Retained Earnings at the end of 2017.

2018

1.	Paid to overhaul the wreckers engine, $4,800, 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, $19,100.
3.	Collected $65,000 in towing fees.
4.	Recorded straight-line depreciation for 2018.
5.	Closed the revenue and expense accounts at the end of 2018.