Champion Contractors completed the following transactions involving equipment. Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Paid $$258,000$ cash plus $$10,320$ in sales tax and $$2,000$ in transportation

$($FOB shipping point$)$ for a new loader. The loader is estimated to have a four$-$

year life and a $$25,800$ salvage value. Loader costs are recorded in the

Equipment account.

Note: Enter debits before credits. Journal entry worksheet

$1$

$3$

$4$

$5$

$6$

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. Journal entry worksheet

$1$

$2$

$4$

$5$

$6$

Recorded annual straight$-$line depreciation on the loader.

Note: Enter debits before credits.Journal entry worksheet

$1$

$2$

$3$

$5$

$6$

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.

Year $1$

January $1$ Paid $$258,$ e$$e cash plus $$10,320$ in sales tax and $$2,000$ in transportation $($FOB shipping point$)$ for a new loader. The

loader is estimated to have a four$-$year life and a $$25,800$ salvage value. Loader costs are recorded in the Equipment

account.

January $3$ 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.$

December $31$ Recorded annual straight$-$line depreciation on the loader.

Year $2$

January $1$ Paid $$4,600$ to overhaul the loader's engine, which increased the loader's estimated useful life by two years.

February $17$ Paid $$1,150$ for minor repairs to the loader after the operator backed it into a tree.

December $31$ Recorded annual straight$-$line depreciation on the loader.

Required:

Prepare journal entries to record these transactions and events.