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Year 1 January 1 Paid $ 2 7 0 , 0 0 0 cash plus $ 1 0 , 8 0 0 in sales tax

Year 1
January 1 Paid $270,000 cash plus $10,800 in sales tax and $1,600 in transportation (F0B 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.
\table[[Date,General Journal,Debit,Credit],[January 1, Year 1,,,],[,,,],[,,,]]
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