Can anyone help me please. 1-6 Champion Contractors completed the following transactions involving...

90.2K

Verified Solution

Question

Accounting

Can anyone help me please. 1-6

imageimageimageimageimageimage

Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $254,000 cash plus $10,160 in sales tax and $1,800 in transportation (F0B shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,400 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid \$4,200 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,050 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. Journal entry worksheet 23456 Paid $254,000 cash plus $10,160 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $25,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Journal entry worksheet Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. Note: Enter debits before credits. Journal entry worksheet 6 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Journal entry worksheet 1 Paid $4,200 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Journal entry worksheet Paid $1,050 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students