Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $322,000 cash plus $12,880 in sales tax and $1,600 in transportation

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Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $322,000 cash plus $12,880 in sales tax and $1,600 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 January 3 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. account. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $5,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,250 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Journal entry worksheet 1 2 3 456 Paid $322,000 cash plus $12,880 in sales tax and $1,600 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. Note: Enter debits before credits. Date January 1, Year 1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 456 Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. Note: Enter debits before credits. Date January 3, Year 1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 4 56 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date December 31, Year 1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 5 6 Paid $5,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Date January 1, Year 2 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 60 9 Paid $1,250 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Date February 17, Year 2 > General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Date December 31, Year 2 General Journal Debit Credit Record entry Clear entry View general journal