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Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $282,000 cash plus $11,280 in sales tax and $1,900 in transportation (FOB

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Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $282,000 cash plus $11,280 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 $28,290 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,150 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. View transaction list Journal entry worksheet Paid $282,000 cash plus $11,280 in sales tax and $1,900 in transportation 1 2 3 4 5 6 Paid $282,000 cash plus $11,280 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 $28,200 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 Journal entry worksheet 2356 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. General Journal Debit Credit Date Jan 1, Year 2 Record entry Clear entry View general journal Prev 7 of 14 Next > Journal entry worksheet 123 Paid $1,150 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

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