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Paid $1,050 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Paid $4,200 to overhaul

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Paid $1,050 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Paid $4,200 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credits. 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. Note: Enter debits before credits. Champion Contractors completed the following transactions irvolving equipment. Year 1 January 1 Patd $314,000 cash plus $12,560 in sales tax and 51,500 in transportation (Fos shipping point) for a nex londer. The loader is estimated to have a four-year life and a $31,48B salvage value. Loader costs are recorded in the Equipsent account. January 3 paid 24, 000 to install air condifioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid 54,280 to overhaul the loader's engine, which increased the loader's estimated usefuI IIfe by two years. February i7 Paid \$1, OSe for minor repairs to the loader after the operator backed it into a tree. December 31 Riccorded annual straight-1ine depreciation on the loader. Required: Prepare journal entries to record these transactions and events. Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Paid $314,000 cash plus $12,560 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $31,400 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits

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