Problem $10-4$A Computing and revising depreciation; revenue and capital expenditures

Champion Contractors completed the following transactions involving equipment. Prepare journal entries for the following events

Year $1$

Jan. $1$ 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.

$3$ 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.$

Dec. $31$ Recorded annual straight$-$line depreciation on the loader.

Year $2$

Jan. $1$ Paid $$5,400$ to overhaul the loader's engine, which increased the loader's estimated useful life by two years.

Feb. $17$ Paid $$820$ for minor repairs to the loader after the operator backed it into a tree.

Dec. $31$ Recorded annual straight$-$line depreciation on the loader.

Check Dec. $31,$ Year $1$: Dr$.$ Depr. Expense$-$Equip., $$70,850$

Dec. $31,$ Year $2$: Dr$.$ Depr. Expense$-$Equip., $$43,590$

Required