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this is accouting question. just one left pls help me. Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $254,000 cash
this is accouting question. just one left pls help me.
Champion Contractors completed the following transactions involving equipment. Year 1 Jan. 1 Paid $254,000 cash plus $10,160 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 $25,400 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. Dec. 31 Recorded annual straight-line depreciation the loader. Year 2 Jan. 1 Paid $4,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,000 for minor repairs to 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. Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 Jan 1, Year 1 Equipment 265,660 Cash 265,660 2 Jan 3, Year 1 4,000 Equipment Cash 4,000 3 Dec 31, Year 1 Depreciation expense-Equipment 60,765 Accumulated depreciation Equipment 60,765 4 Jan 1, Year 2 4,000 Equipment Cash oo 4,000 No Date General Journal Debit Credit 1 Jan 1, Year 1 Equipment 265,660 Cash 265,660 2 Jan 3, Year 1 4,000 Equipment Cash 4,000 3 Dec 31, Year 1 Depreciation expense-Equipment 60,765 Accumulated depreciation Equipment 60,765 4 Jan 1, Year 2 4,000 Equipment Cash 4,000 5 Feb 17, Year 2 1,000 Repairs expense Equipment Cash 1,000 6 Dec 31, Year 2 Depreciation expense-Equipment 35,483 X Accumulated depreciation Equipment 35,483 XStep by Step Solution
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