Tower Company owned a service truck that was purchased at the beginning of 2018 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, 2020, is shown in the following financial statements model. Assets Revenue Expense Net Income Cash Flow Equity Retained = Common Stock + Earnings 10,000 36,000 + Cash 30,000 Accumulated Depreciation 26,000 Machine 42,000 + NA NA NA NA + In 2020, 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. 31 Recognized 2020 depreciation expense. Required a. 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 Stockholders' Equity Revenue Assets Expense Net Income Cash Flow Date Cash + Machine Accumulated Depreciation Common Stock II Retained Earnings - Balance 30,000 + 42,000 26,000 = 10,000 + 36,000 1/4 + + 7/6 + + 8/7 + + 12/31 12/31 Total 30,000 + 42,000 26,000 = 10,000 + 36,000 0 0 = 0 0