Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $258,000 cash plus...

 

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Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $258,000 cash plus $10,320 in sales tax and $1,500 in transportation (Fon shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,800 salvage value. Loader costs are recorded in the Equipment account. January 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. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid 11,225 for sinor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the leader. Required: Prepare journal entries to record these transactions and events. Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $258,000 cash plus $10,320 in sales tax and $1,500 in transportation (Fon shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,800 salvage value. Loader costs are recorded in the Equipment account. January 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. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid 11,225 for sinor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the leader. Required: Prepare journal entries to record these transactions and events. Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $258,000 cash plus $10,320 in sales tax and $1,500 in transportation (Fon shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,800 salvage value. Loader costs are recorded in the Equipment account. January 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. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid 11,225 for sinor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the leader. Required: Prepare journal entries to record these transactions and events. Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $258,000 cash plus $10,320 in sales tax and $1,500 in transportation (Fon shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,800 salvage value. Loader costs are recorded in the Equipment account. January 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. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid 11,225 for sinor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the leader. Required: Prepare journal entries to record these transactions and events.

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Journal Entry Journal entry is the building block of the accounting that chronological re... View the full answer