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Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2014 Jan. 1 Paid $310,000 cash plus
Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2014 Jan. 1 Paid $310,000 cash plus $12,400 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 $31,000 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $6,000 to enclose the cab and install air-conditioning in the loader to enable operations under conditions. This increased estimated salvage value of the loader by another $1,800 Dec. 31 Recorded annual straight-ine depreciation on the loader. 2015 Jan. 1 Paid $4,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years Feb. 17 Paid $1,000 to repair 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
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