Tower Company owned a service truck that was purchases at the beginning of 2018 for $31,000. It had an estimated life of three years and an estimated of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following model.
In 2020, Tower Company spent the following amounts on the truck:
Jan. 4 Overhauled the engine for $6,000. The estimated life was extended one additional year, and the was revised to $3,000.
July 6 Obtained oil change and transmission service, $250.
Aug. 7 Replaced the fan belt and battery, $350.
Dec. 31 Purchased gasoline for the year, $7,500.
31 Recognized 2018 depreciation expense.
Required
Record the 2020 transactions in a statements model like the preceding one.
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