Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2014 Jan. 1 Paid $274,000 cash plus $10,960 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 $27,400 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. 2015 Jan. 1 Paid $4,300 to overhaul the loaders engine, which increased the loaders estimated useful life by two years. Feb. 17 Paid $1,075 to repair the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. (Show work)

Required: Prepare journal entries to record these transactions and events.

1. Jan 1, 2014 - Paid $274,000 cash plus $10,960 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 $27,400 salvage value. Loader costs are recorded in the Equipment account.

2. Jan 3, 2014 - 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.

3. Dec 31,2014- Recorded annual straight-line depreciation on the loader.

4. Jan 1, 2015 - Paid $4,300 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.

5. Feb 17, 2015- Paid $1,075 to repair the loader after the operator backed it into a tree.

6. Dec 31, 2015- Recorded annual straight-line depreciation on the loader.