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E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) L08-2, 8-3 [The following information applies to the questions displayed below.] Hulme Company operates a small manufacturing

image text in transcribedimage text in transcribedimage text in transcribed E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) L08-2, 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 actlvitles. At the beginning of the current year, an asset account for the company showed the following balances: During the current year, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2 the current year that improved efficiency $13,000 Routine repairs on the equipment 1,500 The equipment is belng depreclated on a straight-line basis over an estimated life of 16 years with a $13,000 estimated residual value. The annual accounting perlod ends on December 31. 8-7 Part 1 equlred: Prepare the adjusting entry that was made at the end of last year for depreclation on the manufacturing equlpment. ote: Do not round your Intermedlate calculations. If no entry Is required for a transaction/event, select "No journal entry quired" In the flrst account fleld. Journal entry worksheet Record the adjusting entry for depreciation on the manufacturing equipment at the end of last year. Note: Enter debits before credits. Required Information E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) L08-2, 8-3 [The following information applles to the questions displayed below.] Hulme Company operates a small manufacturing facility as a supplement to Its regular service actlvitles. At the beginning of the current year, an asset account for the company showed the following balances: During the current year, the following expenditures were Incurred for the equipment: Major overhaul of the equipment on January 2 the current year that improved efficiency $13, 000 Routine repairs on the equipment 1,560 The equipment is belng depreclated on a straight-line basis over an estimated life of 16 years with a $13,000 estimated residual value. The annual accounting perlod ends on December 31. E8-7 Part 2 2. Starting at the beginning of the current year, what is the remalning estimated life? Required Information E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) L08-2, 8-3 [The following information applles to the questions displayed below.] Hulme Company operates a small manufacturing facility as a supplement to Its regular service actlvitles. At the beginning of the current year, an asset account for the company showed the following balances: During the current year, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2 the current year that improved efficiency $13,000 Routine repairs on the equipment Routine repairs on the equipment 1,506 The equipment is belng depreclated on a straight-line basis over an estimated life of 16 years with a $13,000 estimated residual value. The annual accounting perlod ends on December 31 . :8-7 Part 3 Requlred: . Prepare the journal entrles to record the two expenditures during current year. Note: If no entry is required for a transaction/event, select "No journal entry required" In the flist account fleld. Journal entry worksheet Record the expenditure for the major overhaul of the equipment. Note: Enter debits before credits

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