Year $1$

January $1$ Paid $$270,000$ cash plus $$10,800$ in sales tax and $$1,600$ in transportation $($F$0$B shipping point$)$ for a new loader. The loader is estimated to have a four$-$year life and a $$27,000$ salvage value. Loader costs are recorded in the Equipment account.

January $3$ Paid $$6,000$ to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $$1,800.$

Year $2$

January $1$ Paid $$4,300$ to overhaul the loader's engine, which increased the loader's estimated useful life by two

February $17$ years.

December $31$ Recorded $$1,075$ for minor repairs to the loader after the operator backed it into a tree.

Required:

Prepare journal entries to record these transactions and events.

Journal entry worksheet

Paid $$270,000$ cash plus $$10,800$ in sales tax and $$1,600$ in transportation $($FOB shipping point$)$ for a new loader. The loader is estimated to have a fouryear life and a $$27,000$ salvage value. Loader costs are recorded in the Equipment account.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $1,$ Year $1,,,],[,,,],[,,,]]$