Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $318,000 cash plus $12,720 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,800 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 $4,500 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,125 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 Journal entry worksheet > 1 2 3 4 5 6 Paid $318,000 cash plus $12,720 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four- year life and a $31,800 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Date January 1, Year 1 General Journal Debit Credit