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 thot improved efficiency Rout ine repairs on the equipment \$ 5,000 1,900 The equipment is being depreciated on a straight-line basis over an estimated life of 16 years with a $19,000 estimated residual value The annual accounting period ends on December 31 Required: Indicate the effects of the following on the accounting equation. Note: Enter decreases to account categories as negative amounts and do not round your intermediate calculations. 1. The adjustment for depreciation at the end of last year. 2. The two expenditures during the current year for (a) the major overhaul of the equipment and (b) repairs and maintenance. \begin{tabular}{|c|c|c|c|c|c|c|} \hline Event & Assets & & = & Liabilities & + & Stockholders' Equity \\ \hline 1. Adjustment for Depreciation & Accumulated depreciation & (7,400) & = & Allowance for uncollectible accounts & . & Depreciation expense \\ \hline 1. Adjustment for Depreciation & Depreciation expense & 7,400 & = & & 7+ & \\ \hline 2a. Major overhaul of equipment & Equipment & 6.000 & = & & 1. & \\ \hline 2a. Major overtiaul of equipenent & Inventories & (6,000) & = & & + & \\ \hline 2a. Major overthaul of equipment & = & & = & & - & \\ \hline 20. Repairs and maintenance & Repairs expense & (1,900) & = & & 1+ & Accounts receivable \\ \hline 20. Repairs and maintenance & & & = & & 1+ & \\ \hline \end{tabular}