Problem 8.4A (Algo) Computing and revising depreclation; revenue and capital expenditures LO C1, C2, c Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $322,888 cash plus $12,890 in sales tax and $1,688 in transportation (For shipping point) for new loader. The loader is estimated to have four-year 11fe and 32,200 salvage value. Loader costs are recorded in the Equipment account January 3 paid $5,000 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, Sae. December 31 Recorded annual straight-line depreciation on the loader Year 2 January 1 paid $4, see to overhaul the loaders engine, which increased the loader is estimated useful life by two years. February 17 Pald 51,125 for sinor repairs to the loader atter 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. Vlow transactions Journal entry worksheet