The following transactions relate to Direct Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. 

2013: 

1. Acquired $60,000 cash from the issue of common stock. 

2. Purchased a used wrecker for $28,000. It has an estimated useful life of three years and a $4,000 salvage value. 

3. Paid sales tax on the wrecker of $3,000. 

4. Collected $46,200 in towing fees. 

5. Paid $8,000 for gasoline and oil. 

6. Recorded straight line depreciation on the wrecker for 2013. 

7. Closed the revenue and expense accounts to Retained Earnings at the end of 2013. 

2014: 

1. Paid for a tune-up for the wrecker's engine, $450. 

2. Bought four new tires, $1,000. 

3. Collected $56,000 in towing fees. 

4. Paid $12,000 for gasoline and oil. 

5. Recorded straight line depreciation for 2014. 

6. Closed the revenue and expense accounts to Retained Earnings at the end of 2014. 

2015: 

1. Paid to overhaul the wrecker's engine, $3,500, 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, $13,200. 

3. Collected $62,000 in towing fees. 

4. Recorded straight-line depreciation for 2015. 

5. Closed the revenue and expense accounts at the end of 2015.

Required: 

a. Use a horizontal statements model like the following one to show the effect of these transactions on the elements of financial statements. Use + for increase, Use - for decrease, and NA for not affected. The first event is recorded as an example.

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

c. Use a vertical model to present financial statements for 2013, 2014, and 2015.