Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $294,000 cash plus $11,760 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 $29,400 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $5,eee 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. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,50e to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,125 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. Journal entry worksheet 1 2 3 4 5 6 Paid $294,000 cash plus $11,760 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 $29,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Date General Journal Debit Credit Jan 1, Year 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 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. Note: Enter debits before credits. Date General Journal Debit Credit Jan 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 Dec 31, Year 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 Paid $4,500 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. Debit Credit Date General Journal Jan 1, Year 2 Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 Paid $1,125 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits Date General Journal Debit Credit Feb 17. Year 2 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. Debit Credit Date General Journal Dec 31, Year 2 Record entry Clear entry View general journal