8-4A (Algo) Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions involving equipment Year 1 January 1 Paid $270,000 cash plus $10,800 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 $27,000 salvage value. Loader costs are recorded in the Equipment January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estinated salvage value of the loader by another $1,500. account. 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 HW Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 1 2 3 4 5 Paid $270,000 cash plus $10,800 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 $27,000 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Date January 1, Year 1 General Journal Debit Credit Record entry Clear entry View general journal Saved Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 1 2 3 4 5 6 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. Note: Enter debits before credits. Date January 3, Year 1 General Journal Debit Credit Record entry Clear entry View general journal Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet View transaction list Journal entry worksheet