Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $306,000 cash plus $12,240 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 $30,600 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,225 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. No Date General Journal Debit Credit 1 Jan 1, Year 1 319,940 Equipment Cash 319,940 2 Jan 3, Year 1 4,000 Equipment Cash ,000 3 Dec 31, Year 1 Depreciation expense-Equipment 71,035 X Accumulated depreciation-Equipment 71,035 X ooo 4 Jan 1, Year 2 4,900 Equipment Cash 4,900 5 Feb 17, Year 2 1,225 Repairs expense-Equipment Cash 1.225 6 Dec 31, Year 2 Depreciation expense-Equipment 44,401 X Accumulated depreciation Equipment 44,401 x Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year Depreciation expense-Equipment 71,035 Accumulated depreciation-Equipment 71,035 Record entry Clear entry View general journal View transaction list 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 Depreciation expense-Equipment 44,401 Accumulated depreciationEquipment 44,401 Record entry Clear entry View general journal