Champion Contractors completed the following transactions involving equipment.
Year
January Paid $ cash plus $ in sales tax and $ in transportation FOB shipping point for a new loader. The
loader is estimated to have a fouryear life and a $ salvage value. Loader costs are recorded in the Equipment
account.
January Paid $ to install air conditioning in the loader to enable operations under harsher conditions. This increased the
estimated salvage value of the loader by another $
December Recorded annual straightline depreciation on the loader.
Year
January Paid $ to overhaul the loader's engine, which increased the loader's estimated useful life by two years.
February Paid $ for minor repairs to the loader after the operator backed it into a tree.
December Recorded annual straightline depreciation on the loader.
Required:
Prepare journal entries to record these transactions and events.
Journal entry worksheet
Recorded annual straightline depreciation on the loader.
