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Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2016 Jan. 1 Paid $314,000 cash plus

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

2016

Jan. 1 Paid $314,000 cash plus $12,560 in sales tax and $1,600 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,400 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.

2017

Jan. 1 Paid $4,900 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb. 17 Paid $1,225 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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