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Champion Contractors completed the following transactions involving equipment. Year 1 January...

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Accounting

Champion Contractors completed the following transactions involving equipment.
Year 1
January 1 Paid $298,000 cash plus $11,920 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,800 salvage value. Loader costs are recorded in the Equipment account.
January 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200.
December 31 Recorded annual straight-line depreciation on the loader.
Year 2
January 1 Paid $4,700 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
February 17 Paid $1,175 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.

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