E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 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 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 Routine repairs on the equipment The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $14,000 estimated residual value. The annual accounting period ends on December 31. 8-7 Part 3 Required: 3. Prepare the journal entries 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 first account field