Tower Company owned a service truck that was purchased at the beginning of 2018 for $39,000 It had an estimated life of three years and an estimated salvage value of $6,000 Tower company uses straight line depreciation Its financial condition as of January 1, 2020, is shown in the following financial statements model Assets Equity Revenue Expense Net Income Cash Flow Cash Machine Accumulated Depreciation Common Stock Retained Earnings 27,000 39,000 22,000 15,000 29,000 NA NA NA NA In 2020, Tower Company spent the following amounts on the truck Jan 4 Overhauled the engine for $6,700 The estimated life was extended one additional year, and the salvage value was revised to $5,000 July 6 Obtained oil change and transmission service, $320 Aug 7 Replaced the fan belt and battery, $420 Dec 31 Purchased gasoline for the year, $8,200 31 Recognized 2020 depreciation expense Required Record the 2020 transactions in a statements model like the preceding one (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change If the element is not affected, leave the cell blank Round your answers to the nearest dollar amount Enter any decreases to account balances with a minus sign ) TOWER COMPANY Statements Model for 2020 Assets Stockholders Equity Revenue Expense Net Income Cash Flow Date Cash Machine Accumulated Depreciation Common Stock Retained Earnings Balance 27,000 39,000 22,000 15,000 29,000 1 4 7 6 8 7 12 31 12 31 Total

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Tower Company owned a service truck that was purchased at the beginning of 2018 for $39,000. It had an estimated life of three years and

Tower Company owned a service truck that was purchased at the beginning of 2018 for $39,000. It had an estimated life of three years and an estimated salvage value of $6,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model.

Assets

Equity

Revenue

Expense

Net Income

Cash Flow

Cash

Machine

Accumulated Depreciation

Common Stock

Retained Earnings

27,000

39,000

22,000

15,000

29,000

In 2020, Tower Company spent the following amounts on the truck:


Jan.	4	Overhauled the engine for $6,700. The estimated life was extended one additional year, and the salvage value was revised to $5,000.
July	6	Obtained oil change and transmission service, $320.
Aug.	7	Replaced the fan belt and battery, $420.
Dec.	31	Purchased gasoline for the year, $8,200.
	31	Recognized 2020 depreciation expense.

Required

Record the 2020 transactions in a statements model like the preceding one. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected, leave the cell blank. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.)

TOWER COMPANY

Statements Model for 2020