100 points Problem 8-4A Computing and revising depreciation; revenue and capital expenditures Lo ct, c2, c3 Champion Contractors completed the following transactions and events involving the purchase and of equipment in its business. 2014 Jan 1 Paid $266,000 cash plus $10.640 in sales tax and transportation (FOB shipping point) for a new The loader is estimated to have a four-year life and a $26,600 salvage value costs are recorded in the account Jan 3 Paid $3000 to enclose the and install air-conditioning in the to enable operations under harsher conditions. This increased the estimated of the loader another $900 Dec. 31 Recorded annual straight-line depreciation on the loader Jan. 1 Paid $5,000 to overhaul the loader's engine. which increased the loader s estimated useful life by two years. Feb 17 Paid $1.250 to repair the loader after the operator backed it into a tree Dec 31 Recorded annual straight line depreciation on the loader Required: Prepare journal entries to record these transactions and events. view, uanse transaction list Journal E 1. Paid $266,000 cash plus $10,640 in sales tax and $1,900 in transportation (FoB shipping point) for a new loader. The loader is estimtated to have a four-year life and a paid s26,60o salvage value. Loader costs are recorded in the Equipment account. estim- 2. paid s3,ooo to enclose the cab and install air- conditioning in the loader to enable operations under dharsher conditions. This increased the estimated Jan 01, 20 salvage value of the loader by another $900. 3, Recorded annual stra ne depreciation on the 4. paid 5,000 to overhaul the loader's engine, which increased the loader's estimated useful life by two