Required: Prepare journal entries to record these transactions and events. Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2016

Jan.		1		Paid $326,000 cash plus $13,040 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $32,600 salvage value. Loader costs are recorded in the Equipment account.
Jan.		3		Paid $5,000 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 $1,500.
Dec.		31		Recorded annual straight-line depreciation on the loader.

2017

Jan.		1		Paid $4,600 to overhaul the loaders engine, which increased the loaders 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 Journal entry worksheet 2 3 4 5 Recorded annual straight-line depreciation on the loader Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Depreciation expense-Equipment Accumulated depreciation-Equipment Record entry Clear entry View general journal