Champion Contractors completed the following transactions involving equipment.

Year 1

January 1	Paid $310,000 cash plus $12,400 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 $31,000 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 $5,000 to overhaul the loaders engine, which increased the loaders 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.

Required:

Prepare journal entries to record these transactions and events.

Journal entry worksheet :

1. Paid $310,000 cash plus $12,400 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 $31,000 salvage value. Loader costs are recorded in the Equipment account.
2. 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.
3. Recorded annual straight-line depreciation on the loader.
4. Paid $5,000 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
5. Paid $1,250 for minor repairs to the loader after the operator backed it into a tree.
6. Recorded annual straight-line depreciation on the loader.