E8-23 (Algo) (Supplement) Recording a Change in Estimate L08-3 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 $ 130,000 67,500 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 $ 21,000 2,500 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $17,500 estimated residual value. The annual accounting period ends on December 31. Required: Prepare the adjusting entry that should be made by Hulme Company at the end of 2020 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to the nearest whole dollar amount.) No Credit Answer is complete but not entirely correct. Date General Journal Debit December 31, 202 Depreciation expense 7,500 X Accumulated depreciation, equipment Repair and maintenance expense 2,500 Cash Equipment 21,000 Cash 7,500 2,500 X 21,000 X