Required information

E$8-7($Algo$)$ Recording Depreciation and Repairs $($Straight$-$Line Depreciation$)$ L$08-2,8-3$

$[$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

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 $2$

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

E$8-7($Algo$)$ Recording Depreciation and Repairs $($Straight$-$Line Depreciation$)$ L$08-2,8-3$

$[$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 $2019$

$$145,600$

$70,200$

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 $1$

Required:

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

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

field.$)$

Journal entry worksheet

Record the adjusting entry for depreciation on the manufacturing equipment

during $2019.$

Note: Enter debits before credits.