Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2014 Jan. 1 Paid $302,000 cash plus $12,080 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 $30,200 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $7,000 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 $2.100. Dec. 31 Recorded annual straight-line depreciation on the loader. 2015 Jan. 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,100 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 1 Paid $302,000 cash plus $12,080 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 $30,200 salvage value. Loader costs are recorded in the Equipment account. 2 Paid $7,000 to endlose 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 $2,100. 3 Recorded annual straight-line depreciation on the loader. 4 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note : = journal entry has been entered Record entry Clear entry 2 Paid $7,000 to endlose 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 $2,100. 3 Recorded annual straight-line depreciation on the loader. 4 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. 5 Paid $1,100 to repair the loader after the operator backed it into a tree. 6 Recorded annual straight-line depreciation on the loader. Note : = journal entry has been entered Record entry Clear entry