19 transactions involving equipment Year 1 1 Paid $314,000 cash plus $12,560 in sales tax and $2,000 in transportation (to shipping point for a new loader. The loader is estimated to have a four-year life and a $31,400 salvage value. Loader coats are recorded in the Iquipment account. Jan. 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. Dec. JI Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated unetul life by two years. reb. 17 Taid $1,150 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare Journal entries to record these transactions and events. View transaction lit Journal entry worksheet 1 2 5 6 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 Note: Enter debits before credits General Journal Debit Credit Dato Jan 1. Year 1 Record entry Clear entry View general Journal Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, Year 1 Record entry Clear entry View general Journal Journal entry worksheet Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1. Year 2 Record entry Clear entry View general journal View transaction llat Journal entry worksheet