Champion Contractors completed the following transactions involving equipment. Year 1

January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account. January 3 December 31

Year 2

Paid $4,800 to install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400. Recorded annual straight-line depreciation on the loader. January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $820 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.

Champion Contractors completed the following I ons involving equipment. Year 1 January 1 Taid $287,600 casb plus $11,500 in salos tax and $1,500 in transportation (ron shipplsg poist) for a ned loader. The loader in estimated to have a four-year life and a 320,600 lalvage value. Loader coutia a recorded in the rquipont account. January 3 Paid 54,00 to install air-conditioning in the loader to enable operations ubder harsher conditions. This increaped the estieated salvage value of the loader by another $1,400. December 31 Recorded annual atralght-1ine depreciation on the loader. Year 2 January 1 Paid 35,400 to ovarhaul the loader's engine, whinh inereased the loader'a estinated useful 1 ife by two February 17 Paid se20 tor ainor repairi to the loader atter the pperater backed it into a tree. Deceaber 31 Recorded annual atraight-11ne depreciation ot the loader. Required: Prepare journal entries to record these transactions and events. Champion Contractors completed the following transactions involving equipment. Year 1 Jahukry 1 Paid $287,600 oanh plus $11,500 in seles tax asd $1,500 In transportation (roB akipping point) for a ses loader. The loader is entisated to bave a four-year life and a $20,609 salvage value. Loader coats are reeorded in the Equiperent account. January:3 Fald $6,800 to install alf-conditiooing in the loader to enable operations under harsher conditioes. This increased the estimated salvagn value of the loader by another 51,400 . Decesber 31 Tecorded abnual straight-line depreciation on the loader. Year 2 years: February 17 Faid 5820 for mines repairn to the loader after the operater backed it into a tree. Decenber 31 Nocorded annual ntraight-1ibe deprediation on the lohder. Required: Prepare joutnal entries to record these transactions and events