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Year $1$

January $1$ Paid $$282,000$ cash plus $$11,280$ in sales tax and $$1,600$ in transportation $($FOB shipping point$)$ for a new loader. The loader is estimated to have a four$-$year life and a $$28,200$ salvage value. Loader costs are recorded in the Equipment account.

January $3$ Paid $$6,000$ to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $$1,800.$

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.Champion Contractors completed the following transactions Involving equipment.

Year $1$

January $1$ Paid $$282,600$ cash plus $$11,289$ in sales tax and $$1,600$ in transportation $($Foo shipping point$)$ for a new loader. The

loader is estimated to have a four$-$year life and a $$28,280$ salvage value. Loader costs are recorded in the Equipnent

account.

January $3$ Paid $$6,ee0$ to install air conditioning in the loader to enable operations under harsher conditions. This increased the

estimated salvage value of the loader by another $$1,800.$

December $31$ Recorded annual straight$-1$ine depreciation on the loader.

Year $2$

January $1$ Paid $$4,200$ to overhaul the loader's engine, which increased the loader's estinated useful $11$ fe 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$-1$ine depreciation on the loader.

Required:

Prepare journal entrles to record these transactions and events.

Journal entry worksheet

Paid $$282,000$ cash plus $$11,280$ in sales tax and $$1,600$ in transportation

$($FOB shipping point$)$ for a new loader. The loader is estimated to have a four$-$

year life and a $$28,200$ salvage value. Loader costs are recorded in the

Equipment account.

Note: Enter debits before credits.

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