Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $322,000 cash plus $12,880 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 $32,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $7,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $2,100. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,100 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,025 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. Journal entry worksheet Paid $4,100 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Date General Journal Debit Credit January 1, Year 2 Record entry Clear entry View general journal Journal entry worksheet Paid $1,025 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Date General Journal Debit Credit February 17, Year 2 Record entry Clear entry View general journal Journal entry worksheet