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. Assume all transactions were in cash.

Year $1$

Acquired $$90,000$ cash from the issue of common stock.

Purchased a used wrecker for $$52,000.$ It has an estimated useful life of three years and a $$7,000$ salvage value.

Paid sales tax on the wrecker of $$3,000.$

Collected $$76,100$ in towing fees.

Paid $$14,000$ 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 wrecker$$s engine, $$2,900.$

Bought four new tires, $$3,250.$

Collected $$82,000$ in towing fees.

Paid $$20,000$ 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 wrecker$$s engine, $$6,800,$ which extended the life of the wrecker to a total of four years. The salvage value did not change.

Paid for gasoline and oil, $$21,100.$

Collected $$85,000$ in towing fees.

Recorded straight$-$line depreciation for Year $3.$

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

Required

Use a horizontal statements model to show the effect of these transactions on the elements of financial statements. Use $+$ for increase, $$ for decrease, and leave blank for not affected.

Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year $1,$ Year $2,$ and Year $3.$