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Champion Contractors completed the following transactions involving equipment Jan Year 1 1 Paid 5270,000 cash plus 510, noe in sales tax and $1,500 in transportation

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Champion Contractors completed the following transactions involving equipment Jan Year 1 1 Paid 5270,000 cash plus 510, noe in sales tax and $1,500 in transportation For shipping point for a new loader. The loader is estimated to have a four-year life and a $27.000 salvage value. Loader costs recorded in the Equipment account. Jan. 3. Pald $5,000 to Install air conditioning in the loader to enable operation under harshes conditions. This increased the estimated salvage value of the loader by another $1,500 Dec. 31 Recorded annual straight-line depreciation on the loader Year 2 Jan. 1 Pald 34, Bae to overhaul the loader's engine, which increased the loades estimated Useful life by two years, Feb. 17 Paid $1,200 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 lew transaction list Journal entry worksheet 2 3 5 6 > Paid $270,000 cash plus $10,800 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four- year life and a $27,000 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1 Year 1 Record entry Clear entry View general journal 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 Journal entry worksheet 2 4 5 6 > 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 2 3 5 6 > Paid $4,800 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. General Joumal Debit Date Jan 1 Year 2 Credit Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 2

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