Tower Company owned a service truck that was purchased at the beginning of Year 1 for $42,000. It had an estimated life of three years and an estimated salvage value of $3,000. Tower Company uses straight-line depreciation. Its financial condition as of January 1, Year 3, is shown in the following financial statements model: Rev. Exp. - Net Inc. Cash Flow Cash 30,000 + + Assets Book Value of Truck 23,000 Equity = Com. Stk. + Ret. Barn. - 10,000 + 43,000 NA - NA - NA NA In Year 3, Tower Company spent the following amounts on the truck: Jan. 4 Overhauled the engine for $7,000. The estimated life was extended one additional year, and the salvage value was revised to $2,000. July 6 Obtained oil change and transmission service, $350. Aug. 7 Replaced the fan belt and battery, $450. Dec. 31 Purchased gasoline for the year, $8,500. Dec. 31 Recognized Year 3 depreciation expense. Required a. Record the Year 3 transactions in a statements model like the preceding one. b. Prepare journal entries for the Year 3 transactions Complete this question by entering your answers in the tabs below. Required A Required B RU Required A Required B Record the Year 3 transactions in a statements model like the preceding one. (In the Cash Flow column, use the initials OA to designate operating FA for financing activity, NC for net change and NA for not affected. Round your answers to the nearest dollar amount. Enter any decreases to ac TOWER COMPANY Statements Model for Year 3 Assets Stockholders' Equity Revenue Expense = Net Income Cash Flow No Cash + Book Value of Truck Common Stock Retained Earnings 30,000+ 23,000 = 10,000+ Balance 114 43,000 NA + 8/7 12/31 12/31 Total Required A Required B > View transaccionist Journal entry worksheet View uransaction UIST Journal entry worksheet Replaced the fan belt and battery, $450. Note: Enter debits before credits. General Journal Date Aug 07 Debit Credit Record entry Clear entry View general journal Pran A Journal entry worksheet Purchased gasoline for the year, $8,500. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet