Question

[The following information applies to the questions displayed below.] 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. 2016 1. Acquired $84,000 cash from the issue of common stock. 2. Purchased a used wrecker for $46,000. It has an estimated useful life of three years and a $6,000 salvage value. 3. Paid sales tax on the wrecker of $2,000. 4. Collected $70,100 in towing fees. 5. Paid $13,400 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for 2016. 7. Closed the revenue and expense accounts to Retained Earnings at the end of 2016. 2017 1. Paid for a tune-up for the wrecker’s engine, $2,300. 2. Bought four new tires, $2,650. 3. Collected $76,000 in towing fees. 4. Paid $19,400 for gasoline and oil. 5. Recorded straight-line depreciation for 2017. 6. Closed the revenue and expense accounts to Retained Earnings at the end of 2017. 2018 1. Paid to overhaul the wrecker’s engine, $6,200, which extended the life of the wrecker to a total of four years. The salvage value did not change. 2. Paid for gasoline and oil, $20,500. 3. Collected $79,000 in towing fees. 4. Recorded straight-line depreciation for 2018. 5. Closed the revenue and expense accounts at the end of 2018. I only need 2018

Answer 1