E8-7 LO8-2, 8-3 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 2017, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2016 $120,000 57.600 During 2017, the following expenditures were incurred for the equipment Routine maintenance and repairs on the equipment s 1,000 13,000 Major overhaul of the equipment that improved efficiency on January 2. 2017 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a S12,000 estimated residual value. The annual accounting period ends on December 31. Required 1. Give the adjusting entry that was made at the end of 2016 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2017, what is the remaining estimated life? 3. Give the journal entries to record the two exnenditures durine 2017