Question

Tower Company owned a service truck that was purchased at the beginning of 2018 for $47,000. It had an estimated life of three years and an estimated salvage value of $5,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets = Equity Revenue − Expense = Net Income Cash Flow Cash + Machine − Accumulated Depreciation = Common Stock + Retained Earnings 35,000 + 47,000 − 33,000 = 19,000 + 30,000 NA − NA = NA NA In 2020, Tower Company spent the following amounts on the truck: Jan. 4 Overhauled the engine for $7,500. The estimated life was extended one additional year, and the salvage value was revised to $4,000. July 6 Obtained oil change and transmission service, $400. Aug. 7 Replaced the fan belt and battery, $500. Dec.31 Purchased gasoline for the year, $9,000. 31 Recognized 2018 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, NC for net change and NA for not affected. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.)

All I need now is the last row for 12/31

Answer 1

Statements of model
	Assets				Stockholders equity			Income statement				Cash flows
Date	Cash	Mach	Acc.dep		Common stock	R/E		revenue	expenses	net income			N.A
Balance	35000	47000	33000		19000	30000				0
Jan-04	-7500	7500				0				0		-7500	IA
Jul-06	-400					-400			400	-400		-400	OA
Aug-08	-500					-500			500	-500		-500	OA
Dec-31	-9000					-9000			9000	-9000		-9000	OA
Dec-31			11250			-11250			11250	-11250			N.A
	17600	54500	44250		19000	8850		0	21150	-21150		-17400	NC
	Book value,jan 18		47000
	Less:acc dep		28000	(47000-5000)/3*2 years
	Book value,jan 20		19000
	Add:addition		7500
	total machine		26500
	salvage		4000
	years		2
	(2 years 2020-2022)
	depreciation		11250
	(26500-4000)/2