Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $290,000 cash plus $11,600 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 $29,000 salvage value. Loader costs are recorded in the Equipment account. January 3 paid $5,000 to install air conditioning in the loader to enablo operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-1ine depreciation on the loader. Year 2 January 1 Paid $4,100 to overbaul the loader's engine, which increased the loader's entimated useful 1ife by two years. February 17 Paid $1,025 for minor repaira to the loader after the operator backed it into a tree. December 31 Recorded annual straight-1ine depreciation on the loador. Required: Prepare journal entries to record these transactions and events. Journal entry worksheet 5 Paid $290,000 cash plus $11,600 in sales tt. x and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $29,000 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Journal entry worksheet 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