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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:**

- Acquired $86,000 cash from the issue of common stock.
- Purchased a used wrecker for $48,000. It has an estimated useful life of three years and a $7,000 salvage value.
- Paid sales tax on the wrecker of $4,000.
- Collected $72,100 in towing fees.
- Paid $13,600 for gasoline and oil.
- Recorded straight-line depreciation on the wrecker for Year 1.
- Closed the revenue and expense accounts to Retained Earnings at the end of Year 1.

**Year 2:**

- Paid for a tune-up for the wrecker’s engine, $2,500.
- Bought four new tires, $2,850.
- Collected $78,000 in towing fees.
- Paid $19,600 for gasoline and oil.
- Recorded straight-line depreciation for Year 2.
- Closed the revenue and expense accounts to Retained Earnings at the end of Year 2.

**Year 3:**

- Paid to overhaul the wrecker’s engine, $6,400, which extended the life of the wrecker to a total of four years. The salvage value did not change.
- Paid for gasoline and oil, $20,700.
- Collected $81,000 in towing fees.
- Recorded straight-line depreciation for Year 3.
- Closed the revenue and expense accounts at the end of Year 3.

**Task:**

For each year, record the transactions in general journal form and post them to T-accounts.

Answer :

Final answer:

To record the transactions in general journal form and post them to T-accounts, follow the steps provided for each year. This process helps in accurately tracking and analyzing the financial position of a business.

Explanation:

To record the transactions in general journal form and post them to T-accounts, follow the steps below for each year:

Year 1:

  1. January 1:
  2. January 1:
  3. January 1:
  4. Throughout the year:
  5. Throughout the year:
  6. Throughout the year:
  7. December 31:
  8. December 31:

Year 2:

  1. Throughout the year:
  2. Throughout the year:
  3. Throughout the year:
  4. Throughout the year:
  5. Throughout the year:
  6. December 31:
  7. December 31:

Year 3:

  1. Throughout the year:
  2. Throughout the year:
  3. Throughout the year:
  4. Throughout the year:
  5. December 31:
  6. December 31:

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Rewritten by : Jeany

Final answer:

To record the transactions in general journal form and post them to T-accounts, follow the steps provided for each year. This process helps in accurately tracking and analyzing the financial position of a business.

Explanation:

To record the transactions in general journal form and post them to T-accounts, follow the steps below for each year:

Year 1:

  1. January 1:
  2. January 1:
  3. January 1:
  4. Throughout the year:
  5. Throughout the year:
  6. Throughout the year:
  7. December 31:
  8. December 31:

Year 2:

  1. Throughout the year:
  2. Throughout the year:
  3. Throughout the year:
  4. Throughout the year:
  5. Throughout the year:
  6. December 31:
  7. December 31:

Year 3:

  1. Throughout the year:
  2. Throughout the year:
  3. Throughout the year:
  4. Throughout the year:
  5. December 31:
  6. December 31:

Learn more about general journal form here:

https://brainly.com/question/33897284

#SPJ14