Problem 8-4A 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 $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.
Jan.		3		Paid $4,800 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 $1,400.
Dec.		31		Recorded annual straight-line depreciation on the loader.

2017

Jan.		1		Paid $5,400 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb.		17		Paid $820 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.