Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $254,000 cash plus $10,160 in sales tax and $2,000 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,400 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 $4,300 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 $254,000 cash plus $10,160 in sales tax and $2,000 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four- year life and a $25,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. General Journal Debit Credit Date January 1, Year 1 Record entry Clear entry View general journal Journal entry worksheet 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. General Journal Debit Credit Date January 3, Year 1 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 General Journal Debit Credit December 31, Year 1 Record entry Clear entry View general journal Journal entry worksheet 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. Date General Journal Debit Credit January 1, Year 2 Record entry Clear entry View general journal 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. General Journal Debit Credit Date February 17, Year 2 Record entry Clear entry View general journal Journal entry worksheet