Champion Contractors completed the following transactions involving equipment.

January 1 Paid $314,000 cash plus $12,560 in sales tax and $2,000 in transportation (FOB shipping point) for a new

loader. The loader is estimated to have a four-year life and a $31,400 salvage value. Loader costs are recorded in the Equipment account.

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 $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two

February 17

Paid $1,225 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.

Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $314,600 cash plus $12,560 in sales tax and $2,000 in transportation (F08 shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,400 satvage value. Loader costs are recorded in the Equipment account. January 3 Pald $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estinated salvage vatue of the loader by another $1,200. Decenber 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estinated useful life by two years. February 17 Pald $1,225 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 2 56 Paid $314,000 cash plus $12,560 in sales tax and $2,000 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $31,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Journal entry worksheet 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. 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 Paid $4,900 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 1 Paid $1,225 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