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: Manufacturing equipment $ 124,000 Accumulated depreciation through the end of last year 65,000 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 $ 19,000 Routine repairs on the equipment 1,400 The equipment is being depreciated on a straight-line basis over an estimated life of 16 years with a $20,000 estimated residual value. The annual accounting period ends on December 31. Required:

1. Prepare the adjusting entry that was made at the end of last year for depreciation on the manufacturing equipment.

2. Starting at the beginning of the current year, what is the remaining estimated life?

3. Prepare the journal entries to record the two expenditures during current year.