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	$ 120,000
Accumulated depreciation through the end of last year	57,600

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	1,000

The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $12,000 estimated residual value. The annual accounting period ends on December 31.

PART 1:

Prepare the adjusting entry that was made at the end of last year for depreciation on the manufacturing equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

PART 2:

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

PART 3:

. Prepare the journal entries to record the two expenditures during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Journal entry worksheet Record the adjusting entry for depreciation on the manufacturing equipment at the end of last year. Note: Enter debits before credits. Journal entry worksheet Record the expenditure for the major overhaul of the equipment. Note: Enter debits before credits. Journal entry worksheet Record the expenditure for routine maintenance and repairs on the equipment. Note: Enter debits before credits