Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2017
Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account.
Jan. 3 Paid $4,800 to enclose the cab and install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400.
Dec. 31 Recorded annual straight-line depreciation on the loader.

2018:
Jan. 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.
Feb. 17 Paid $820 to repair the loader after the operator backed it into a tree.
Dec. 31 Recorded annual straight-line depreciation on the loader.

Required:
Prepare journal entries to record these transactions and events.

Answer and Explanation:

The Journal entries are shown below:-

Jan 1

Equipment Dr, $300,600 ($287,600 + $11,500 + $1,500)

          To Cash $300,600

(Being equipment is recorded)

Jan 3

Equipment Dr, $4,800

          To Cash $4,800

(Being equipment is recorded)

Dec 31

Depreciation expenses-equipment Dr, $70,850

($300,600 + $4,800 - $20,600 - $1,400) ÷ 4

        To Accumulated depreciation-equiment $70,850

(Being depreciation expense is recorded)

Year 2018

Jan 1

Equiment Dr, $5,400

       To Cash $5,400

(Being equipment is recorded)

Feb 17

Repair expenses Dr, $820

          To Cash $820

(Being repair expense is recorded)

Dec 31

Depreciation expenses-equipment Dr, $43,590

        To Accumulated depreciation-equiment $43,590

(Being depreciation expense is recorded)

For Computing the Depreciation year 2018

Particulars                                                                                  Amount

Jan 1 2017 Cost of loader ($287,600 + $11,500 + $1,500)     $300,600

Add cost of air conditioning installation on

Jan 3 2017                                                                                 $4,800

Book value of depreciation for year 2017                              $305,400

Less: Depriciation of year 2017

($305,400 - $20,600 - $1,400) ÷ 4                                         $70,850

After depreciation the book value for year 2017                   $234,550

Add: Cost to overhaul the loader's engine                            $5,400

Before depreciation the book value of 2018                         $239,950

Depreciation of year 2018

($239,950 - $22,000) ÷ (4 - 2 + 1)                                           $43,590

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

2b2t

explanation:

2b2t