Champion Contractors completed the following transactions involving equipment. Year 1

January 1	Paid $278,000 cash plus $11,120 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 $27,800 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 $4,300 to overhaul the loaders engine, which increased the loaders estimated useful life 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-line depreciation on the loader.

Required: Prepare journal entries to record these transactions and events.

Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $278,000 cash plus $11,120 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 $27,800 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 $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life 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-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. Journal entry worksheet Paid $278,000 cash plus $11,120 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $27,800 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Journal entry worksheet 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. Note: Enter debits before credits. Journal entry worksheet 6 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Journal entry worksheet 1 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Journal entry worksheet Paid $1,075 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Journal entry worksheet 1234 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits