Year 1 January 1 Paid $382,000 cash plus $12,080 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 $30,288 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. December 31 Recorded annual straight-line depreciation on the loader. This increased the estimated salvage value of the loader by another $1,500. Year 2 January 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two February 17 Paid $1,100 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. years. View transaction list Journal entry worksheet 2 3 4 5 6 Paid $302,000 cash plus $12,080 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 $30,200 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debits before credits General Journal Date January 1 Year 1 Debit Credit Record entry Clear entry View general journal Year 1 January 1 Paid $362,000 cash plus $12,080 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 $30,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,100 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. View transaction list Journal entry worksheet Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits General Journal Debit Credit Date December 31, Year 1 Record entry Clear entry View general journal Year 1 January 1 Paid $382,000 cash plus $12,080 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 $30,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 paid $1,100 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. View transaction list Journal entry worksheet
