Problem 8-4A Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions involving equipment Year 1 Jan. I Pald $278,690 cash plus $11,120 in soles tax and $1,800 in transportation (fos shipping point) for a new loader. The loader is estinated to have a four-year 11fe and a $27,800 salvage value. Loader costs are recorded in the Equipeent account. Jan. 3 Paid 36,900 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estinated salvage value of the loader by another $1,800. Dec. 31 Hecorded annual straight-1ine depreciation on the loader. Yeor 2 3an. I Paid $4,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb, 17 . Paid \$1, 0ee for minor repairs to the losder after the operator backed it into a tree. Dec. 31 Recorded annual stralght-1ine depreclotion on the loader. Required: Prepare journal entries to record these transactions and events Journal entry worksheet 2 Paid $278,000 cash plus $11,120 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a fouryear life and a $27,800 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits. Journal entry worksheet Paid $6,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. Note: Enter debits before credits. Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. Journal entry worksheet Paid $4,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Note: Enter debits before credite. Journal entry worksheet Paid $1,000 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits