Tower Company owned a service truck that was purchased at the beginning of Year $1$ for $$31,000.$ It had an estimated life of three years and an estimated salvage value of $$4,000.$ 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 $$6,000.$ The estimated life was extended one additional year, and the salvage value was revised to $$3,000.$

July $6$ Obtained oil change and transmission service, $$250.$

August $7$ Replaced the fan belt and battery, $$350.$

December $31$ Purchased gasoline for the year, $$7,500.$

December $31$ Recognized Year $3$ depreciation expense.

Required

Record the Year $3$ transactions in a horizontal statements model.

Prepare journal entries for the Year $3$ transactions.