Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $262,000 cash plus $10,480 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 $26,200 salvage value. Loader costs are recorded in the Equipment account. 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. 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. Required: Prepare journal entries to record these transactions and events. View transaction list View journal entry worksheet No Date General Journal Debit Credit N 1 January 1, Year 1 Equipment 2 Cash January 3, Year 1 Equipment Cash 3 December 31, Year 1 Depreciation expense-Equipment Accumulated depreciation-Equipment 4 5 January 1, Year 2 Equipment Cash February 17, Year Repairs expense-Equipment 2 Cash 6 December 31, Year 2 Depreciation expense-Equipment