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Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $274,000 cash...

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Accounting

image Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $274,000 cash plus $10,960 in sales tax and $1,700 in transportation (FOB shipping point) for a new 10ader. The loader is estimated to have a four-year life and a $27,400 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 annul straight-line depreciation on the loader. Year 2 January 1 Paid $4,800 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,200 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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