Required information

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

Accumulated depreciation through $2019$

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

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

Routine maintenance and repairs on the equipment

The equipment is being depreciated on a straight$-$line basis over an estimated life of $17$ years with a $$13,000$ estimated

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

E$8-7$ Part $3$

Required:

Prepare the journal entries to record the two expenditures during $2020.($If no entry is required for a transaction$/$event$,$ select $"$No

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

Journal entry worksheet

Record the expenditure for the major overhaul of the equipment.

Note: Enter debits before credits.