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Clarion contractors completed the following transactions and events
Jan 1 paid 255440 cash plus 15200 in sales tax and 2500 in transportation fees for a new loader. Loader has a four year life and a 34740 salvage value. Loader costs are recorded in the equipment account.
Jan 3 Paid 3660 to enclose the cab and install air conditioning . This increased the salvage value by 1110
dec 31 Recorded annual straight line depreciation by loader
2005
Jan 1 Oaid 4500 to overhaul the loaders engine which increased the loaders estimated usefull life by two years
feb 17 Paid 920 to repair loader after the operator backs into a tree
dec 31 Recorded annual straight line depreciation on loader
1. Prepare journal entries to record these transactions and events
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