Year 1 January 1 Paid $310,000 cash plus $12,400 in sales tax and $1,800 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $31,000 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $3,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $900. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $5,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,250 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. Answer is not complete. NO General Journal Credit Date January 1, Year 1 Equipment Cash Debit 324,200 1 324,200 2 January 3, Year 1 Equipment 3,000 Cash 3,000 3 70,275 December 31, Yeal Depreciation expense-Equipment Accumulated depreciation-Equipment 70,275 4 5,000 January 1, Year 2 Equipment Cash >> 5,000 5 1,250 February 17, Year Repairs expense-Equipment Cash 1,250 6 December 31, Yeal Depreciation expense-Equipment Accumulated depreciation Equipment