Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs recorded in the Equipment account. January 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher condition increased the estimated salvage value of the loader by another $1,400. ecember 31 Recorded annual straight-line depreciation on the loader. ear 2 January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by years. ebruary 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. ecember 31 Recorded annual straight-line depreciation on the loader. equired: epare journal entries to record these transactions and events.

Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs recorded in the Equipment account. January 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher condition increased the estimated salvage value of the loader by another $1,400. ecember 31 Recorded annual straight-line depreciation on the loader. ear 2 January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by years. ebruary 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. ecember 31 Recorded annual straight-line depreciation on the loader. equired: epare journal entries to record these transactions and events.

Name: Champion Contractors completed the following transactions involving e
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Description: Champion Contractors completed the following transactions involving equipment.Year 1January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a newloader. The loader is estimated to have a four-year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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