Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $310,000 cash plus $12,400 in sales tax and $1,500 in transportation (FoB shipping point) for a new loader. The loader is estimated to have a four-year 11fe and a $31,000 salvage value. Loader costs are recorded in the Equipment account. January 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. December 31 Recorded annual straight-1ine depreciation on the loader. Year 2 January 1 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useft ilie by two years. February 17 paid $1,075 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-1ine depreciation on the loader. Required: Prepare journal eAtries to record these transactions and events. 1 Paid $310,000 cash plus $12,400 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 $31,000 salvage value. Loader costs are recorded in the Equipment account. 2. 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. 3 Recorded annual straight-line depreciation on the loader. 4 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. 2 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. 3 Recorded annual straight-line depreciation on the loader. 4 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. 5 Paid $1,075 for minor repairs to the loader after the operator backed it into a tree. 6 Recorded annual straight-line depreciation on the loader. Note : O= journal entry has been entered