Problem 10-4A Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2016 Jan. 1 Paid $250,000 cash plus $10,000 in sales tax and $2,000 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,000 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $7,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $2,100. Dec. 31 Recorded annual straight-line depreciation on the loader. 2017 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 to repair 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 View journal entry worksheet General Journal Debit Credit No 1 Date Jan 01, 2016 262,000 Equipment Cash 262,000 2 Jan 03, 2016 7,000 Equipment Cash 7.000 Dec 31, 2016 Depreciation expense-Equipment Accumulated depreciation Equipment 4 Jan 01, 2017 4.600 Equipment Cash 4.600 5 Feb 17, 2017 Repairs expense-Equipment 1,150 Cash 7. 150 6 Dec 31, 2017 Depreciation expense-Equipment Accumulated depreciation Equipment