Year 1 Jan. 1 Paid $298,000 cash plus $11,920 in sales tax and $1,600 in transportation (POB 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 $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 on the loader. Year 2 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,150 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 Credit Debit 311,520 1 Jan 1. Year 1 Equipment Cash 311,520 2 Jan 3. Year 1 4.000 Equipment Cash Os 4,000 3 Dec 31, Year 1 71.630 Depreciation expense-Equipment Accumulated depreciation Equipment 71,630 4 Jan 1. Year 2 4,600 Equipment Cash 4,600 5 Feb 17 Year 2 1.150 Repairs expense-Equipment Cash 1.150 42.298 6 Dec 31. Year 2 Depreciation expense-Equipment Accumulated depreciation Equipment 42.2983