Courtney Contractors completed the following transactions and events involving the purchase

Courtney Contractors completed the following transactions and events involving the purchase and operation of equipment in its business:

 

2007

 

Jan. 1   Paid $127,400 cash plus $6,370 in sales tax and $1,800 in transportation (FOB shipping point) for a new crane. The crane is estimated to have a five-year life and a $15,570 salvage value. Crane costs are recorded in the Equipment account.

 

Jan. 3   Paid $5,600 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.

 

2008

 

Jan. 1   Paid $10,000 to overhaul the crane’s boom, which increased the crane’s estimated useful life by one year.

 

Feb. 17  Paid $3,200 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.