Courtney Contractors completed the following transactions and events involving t
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Courtney Contractors completed the following transactions and events involving the purchase and operation of equipment in its business:2007Jan. 1 Paid $127400 cash plus $6370 in sales tax and $1800 in transportation (FOB shipping point) for a new crane. The crane is estimated to have a five-year life and a $15570 salvage value. Crane costs are recorded in the Equipment account.Jan. 3 Paid $5600 to paint the company logo and install air conditioning in the crane. This increased the estimated salvage value of the crane by another $600.Dec. 31 Recorded annual straight-line depreciation on the crane.2008Jan. 1 Paid $10000 to overhaul the crane s boom which increased the crane s estimated useful life by one year.Feb. 17 Paid $3200 to repair the crane after the crane operator damaged it while in use.Dec. 31 Recorded annual straight-line depreciation on the crane.Required:Prepare journal entries to record these transactions and events.
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