Question

Clarion Contractors completed the following transactions and events involving the purchase and operation of equipment in its 2014 Jan. Paid $255,440 cash plus $15,200 in sales tax and $2,500 in transportation (FOB shipping point) for a new loader The loader is estimated to have a four-year life and a $34,740 residual value. Loader costs are recorded in the Equipment account dan 3 Paid $3,660 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated residual value of the loader by another $1,110 Recorded annual straight-line depreciation on the loader 2015 dan Paid $4,500 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Paid $920 to repair the loader after the operator backed it into a tree Feb. 17 ec3 Recorded annual straight-line depreciation on the loader Required Prepare journal entries to record these transactions and events. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Jan. 1, 2014 Jan. 3, 2014 Dec. 31, 2014 to select) Jan. 1, 2015 to select) Feb. 17, 2015 Dec. 31, 2015

Answer 1