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Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $ 2 7 0 , 0 0 0 cash plus $ 1

Champion Contractors completed the following transactions involving equipment.
Year 1
January 1 Paid $270,000 cash plus $10,800 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 $27,000 salvage value. Loader costs are recorded in the Equipment
account.
January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the
estimated salvage value of the loader by another $1,500.
December 31 Recorded annual straight-line depreciation on the loader.
Year 2
January 1 Paid $4,800 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.
February 17 Paid $1,200 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
Recorded annual straight-line depreciation on the loader.
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