! Required information [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. Year 1 1. Acquired $85,000 cash from the issue of common stock. 2. Purchased a used wrecker for $47,000 cash. It has an estimated useful life of three years and a $11,000 salvage value. 3. Paid sales tax on the wrecker of $3,000. 4. Collected $71,100 in towing fees. 5. Paid $13,500 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for Year 1. 7. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1. Year 2 1. Paid for a tune-up for the wrecker's engine, $2,400. 2. Bought four new tires, $2,750. 3. Collected $77,000 in towing fees. 4. Paid $19,500 for gasoline and oil. 5. Recorded straight-line depreciation for Year 2. 6. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2. Year 3 1. Paid to overhaul the wrecker's engine, $6,300, 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, $20,600. 3. Collected $80,000 in towing fees. 4. Recorded straight-line depreciation for Year 3. 5. Closed the revenue and expense accounts at the end of Year 3. b. For each year, record the transactions in general journal form and post them to T-accounts. Complete this question by entering your answers in the tabs below. Year 1 General Year 2 General Year 3 General Journal Journal Journal T Accounts For year 1, record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet D-Li Candie
! Required information [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. Year 1 1. Acquired $85,000 cash from the issue of common stock. 2. Purchased a used wrecker for $47,000 cash. It has an estimated useful life of three years and a $11,000 salvage value. 3. Paid sales tax on the wrecker of $3,000. 4. Collected $71,100 in towing fees. 5. Paid $13,500 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for Year 1. 7. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1. Year 2 1. Paid for a tune-up for the wrecker's engine, $2,400. 2. Bought four new tires, $2,750. 3. Collected $77,000 in towing fees. 4. Paid $19,500 for gasoline and oil. 5. Recorded straight-line depreciation for Year 2. 6. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2. Year 3 1. Paid to overhaul the wrecker's engine, $6,300, 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, $20,600. 3. Collected $80,000 in towing fees. 4. Recorded straight-line depreciation for Year 3. 5. Closed the revenue and expense accounts at the end of Year 3. b. For each year, record the transactions in general journal form and post them to T-accounts. Complete this question by entering your answers in the tabs below. Year 1 General Year 2 General Year 3 General Journal Journal Journal T Accounts For year 1, record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet D-Li Candie
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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![!
Required information
[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.
Year 1
1. Acquired $85,000 cash from the issue of common stock.
2. Purchased a used wrecker for $47,000 cash. It has an estimated useful life of three years and a $11,000 salvage value.
3. Paid sales tax on the wrecker of $3,000.
4. Collected $71,100 in towing fees.
5. Paid $13,500 for gasoline and oil.
6. Recorded straight-line depreciation on the wrecker for Year 1.
7. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1.
Year 2
1. Paid for a tune-up for the wrecker's engine, $2,400.
2. Bought four new tires, $2,750.
3. Collected $77,000 in towing fees.
4. Paid $19,500 for gasoline and oil.
5. Recorded straight-line depreciation for Year 2.
6. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2.
Year 3
1. Paid to overhaul the wrecker's engine, $6,300, 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, $20,600.
3. Collected $80,000 in towing fees.
4. Recorded straight-line depreciation for Year 3.
5. Closed the revenue and expense accounts at the end of Year 3.
b. For each year, record the transactions in general journal form and post them to T-accounts.
Complete this question by entering your answers in the tabs below.
Year 1 General Year 2 General Year 3 General
Journal
Journal
Journal
T Accounts
For year 1, record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list View journal entry worksheet
D-Li
Candie](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c2a5a6a-1705-4081-88a0-53da8029a49c%2Fa6d70767-e5d6-428b-a4aa-da1f3ff3d7ee%2Fqihe4o_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[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.
Year 1
1. Acquired $85,000 cash from the issue of common stock.
2. Purchased a used wrecker for $47,000 cash. It has an estimated useful life of three years and a $11,000 salvage value.
3. Paid sales tax on the wrecker of $3,000.
4. Collected $71,100 in towing fees.
5. Paid $13,500 for gasoline and oil.
6. Recorded straight-line depreciation on the wrecker for Year 1.
7. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1.
Year 2
1. Paid for a tune-up for the wrecker's engine, $2,400.
2. Bought four new tires, $2,750.
3. Collected $77,000 in towing fees.
4. Paid $19,500 for gasoline and oil.
5. Recorded straight-line depreciation for Year 2.
6. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2.
Year 3
1. Paid to overhaul the wrecker's engine, $6,300, 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, $20,600.
3. Collected $80,000 in towing fees.
4. Recorded straight-line depreciation for Year 3.
5. Closed the revenue and expense accounts at the end of Year 3.
b. For each year, record the transactions in general journal form and post them to T-accounts.
Complete this question by entering your answers in the tabs below.
Year 1 General Year 2 General Year 3 General
Journal
Journal
Journal
T Accounts
For year 1, record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
View transaction list View journal entry worksheet
D-Li
Candie
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