Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2016 Jan. 1 Paid $294,000 cash plus $11,760 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,400 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $5,000 to enclose the cab and 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. 31 Recorded annual straight-line depreciation on the loader. 2017 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,150 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. View transaction list Journal entry worksheet 2 3 4 5 6 Paid $294,000 cash plus $11,760 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four- year life and a $29,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. | General Journal Debit Credit Date Jan 01, 2016 Record entry Clear entry View general journal 3 4 5 6 Paid $5,000 to enclose the cab and 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. General Journal Debit Credit Date Jan 03, 2016