Champion Contractors completed the following transactions Involving equipment.

Year $1$

January $1$ Paid $$274,000$ cash plus $$10,960$ in sales tax and $$1,900$ in transportation $($FOB shipping point$)$ for a new loader. The

loader is estimated to have a four$-$year life and a $$27,400$ 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$-$line depreciation on the loader.

Year $2$

January $1$ Paid $$4,700$ to overhaul the loader's engine, which increased the loader's estimated useful life by two years.

February $17$ Paid $$1,175$ for minor repairs to the loader after the operator backed it into a tree.

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

Requlred:

Prepare journal entrles to record these transactions and events.

Journal entry worksheet

$1$

$3$

$4$

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$6$

Paid $$274,000$ cash plus $$10,960$ in sales tax and $$1,900$ in transportation

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

year life and a $$27,400$ salvage value. Loader costs are recorded in the

Equipment account.

Note: Enter debits before credits.