Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2016

Jan.		1		Paid $290,000 cash plus $11,600 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,000 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 harsher conditions. This increased the estimated salvage value of the loader by another $1,800.
Dec.		31		Recorded annual straight-line depreciation on the loader.

2017

Jan.		1		Paid $4,100 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb.		17		Paid $1,025 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.

Journal entry worksheet

• Paid $290,000 cash plus $11,600 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,000 salvage value. Loader costs are recorded in the Equipment account.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01, 2016

Journal entry worksheet

• Paid $6,000 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 $1,800.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 03, 2016

Journal entry worksheet

• Recorded annual straight-line depreciation on the loader.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31, 2016

Journal entry worksheet

• Paid $4,100 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01, 2017

Journal entry worksheet

• Paid $1,025 to repair the loader after the operator backed it into a tree.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Feb 17, 2017

Journal entry worksheet

• Recorded annual straight-line depreciation on the loader.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31, 2017