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How to process computing and revising depreciation;>> Get This Solution

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Please provide information on how to process computing and revising depreciation, revenue and capital expenditures. A sample template or the link to a similar problem from the solution library would be helpful.;Fundamental Accounting Principals, 18th Edition;Wild, Larson, Chiappetta, McGraw-Hill Irwin;Problem 10-3A: Computing and revising depreciation, revenue and capital expenditures.;Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.;2007;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 cost 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.;2008;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 backs it into a tree.;Dec. 31 Recorded annual straight-line depreciation on the loader.;Required: Prepare journal entries to record these transactions and events.;Fundamental Accounting Principals, 18th Edition;Wild, Larson, Chiappetta, McGraw-Hill Irwin;Problem 10-3A: Computing and revising depreciation, revenue and capital;expenditures.;Champion Contractors completed the following transactions and events;involving the purchase and operation of equipment in its business.;2007;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 cost 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.;2008;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 backs it into;a tree.;Dec. 31 Recorded annual straight-line depreciation on the loader.;Required: Prepare journal entries to record these transactions and;events.

 

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