E8-5 Recording Depreciation and Repairs (Straight-Line Depreciation) Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2014 , an asset account for the company showed the following palances' During 2014, the following expenditures were incurred for the equipment: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency on January 2, 2014 $1,000 13,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $12,000 estimated residual value. The annual accounting period ends on December 31 . Required: 1. Prepare the adjusting entry that was made at the end of 2013 for depreciation on the manufacturing equipment. General Journal Debit Credit 2. Starting at the beginning of 2014 , what is the remaining estimated life? 3. Prepare the journal entries to record the two expenditures during 2014