Champion Contractors completed the following transactions involving equipment. Jan. Year 1 1 Paid $278,000 cash plus $11,120 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 $27,800 salvage value. Loader costs are recorded in the Equipment account. 3 Paid $5,000 to 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. Jan. Year 2 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life Feb. 17 paid $1,150 for minor repairs to 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 Paid $278,000 cash plus $11,120 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 $27,800 salvage value. Loader costs are recorded in the Equipment account View transaction list Journal entry worksheet Paid $5,000 to 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. Date General Journal Debit Credit Jan 3, Year 1 Record entry Clear entry View general Journal Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 1 Record entry Clear entry View general Journal Journal entry worksheet Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1. Year 2 Record entry Clear entry View general journal Journal entry worksheet Paid $1,150 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Date General Journal Debit Credit Feb 17, Year 2 Record entry Clear entry View general journal Journal entry worksheet