E$8-7$ Part $2$

Starting at the beginning of $2020,$ what is the remaining estimated life?

Remaining life

years Required:

Prenare the iournal entries to record the two expenditures during $2020.($If no entry is required for a transaction

issessment Tool iFrame $"$ in the first account field.$)$

Journal entry worksheet

Record the expenditure for the major overhaul of the equipment.

Note: Enter debits before credits. Required:

Prepare the journal entries to record the two expenditures during $2020.($If no entry is required for a transactic

journal entry required" in the first account field.$)$

Journal entry worksheet

Record the expenditure for routine maintenance and repairs on the equipment.

Note: Enter debits before credits. Required intormation

E$8-7($Algo$)$ Recording Depreciation and Repairs $($Straight$-$Line Depreciation$)$ LO$8-2,8-3$

$[$The following information applies to the questions displayed below.$]$

Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning

of $2020,$ an asset account for the company showed the following balances:

Manufacturing equipment

$ $137,000$

Accumulated depreciation through $2019$

$48,000$

During $2020,$ the following expenditures were incurred for the equipment:

Major overhaul of the equipment on January $2,2020,$ that improved efficiency

$$13,000$

Routine maintenance and repairs on the equipment

$1,200$

The equipment is being depreciated on a straight$-$line basis over an estimated life of $20$ years with a $$17,000$ estimated

residual value. The annual accounting period ends on December $31.$

E$8-7$ Part $1$

Required:

Prepare the adjusting entry that was made at the end of $2019$ for depreciation on the manufacturing equipment. $($Do not round

intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first accoun

field.$)$

Journal entry worksheet

Record the adjusting entry for depreciation on the manufacturing equipment

during $2019.$

Note: Enter debits before credits.