WEEK FIVE

Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2014
Jan.	1	Paid $298,000 cash plus $11,920 in sales tax and $1,600 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,800 salvage value. Loader costs are recorded in the Equipment account.
Jan.	3	Paid $6,000 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 $1,800.
Dec.	31	Recorded annual straight-line depreciation on the loader.

2015
Jan.	1	Paid $4,200 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb.	17	Paid $1,050 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.

No	Date	General Journal	Debit	Credit
1	Jan 01, 2014	Equipment	311,520
1		Cash		311,520
2	Jan 03, 2014	Equipment	6,000
2		Cash		6,000
3	Dec 31, 2014	Depreciation expenseEquipment
3		Accumulated depreciationEquipment
4	Jan 01, 2015	Equipment	4,200
4		Cash		4,200
5	Feb 17, 2015	Repairs expenseEquipment	1,050
5		Cash		1,050
6	Dec 31, 2015	Depreciation expenseEquipment
6		Accumulated depreciationEquipment

PLEASE ANSWER THE QUESTIONS CORRECTLY THIS TIME; PLEASE FILL IN THE BLANKS!!!