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07 5 8 points Sipped Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $270,000 cash plus $10,800 in sales tax and $1,600 in transportation (FOS shipping point) for a new loader. The loader is estimated to have a four-year life and 527,00 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid 54,000 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 54,900 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 paid $1,225 for minor repairs to the loader after the operator backed it into o tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. eBook Print References View transaction list Journal entry worksheet 5 6 > 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 four year life and a $27,000 salvage value. Loader costs are recorded in the Equipment account. Note: Enter debts before credits General Journal Debit Credit Date January 1 Year 1 Record entry Clear entry View general Journal Journal entry worksheet 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. Note: Enter debits before credits. General Journal Debit Credit Date January 3, Year 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 > 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 View transaction list Journal entry worksheet Paid $1,225 for minor repairs to the loader after the operator backed it into a tree. Note: Enter debits before credits. General Journal Debit Credit Date February 17, Year 2 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 > Recorded annual straight-line depreciation on the loader. Note: Enter debits before credits. General Journal Debit Credit Date December 31, Year 2 Record entry Clear entry View general journal