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	$	120,000
Accumulated depreciation through 2016		57,600

During 2017, the following expenditures were incurred for the equipment:

Routine maintenance and repairs on the equipment	$	1,000
Major overhaul of the equipment that improved efficiency on January 2, 2017		13,000

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.

2. Starting at the beginning of 2017, what is the remaining estimated life?

3. Prepare the journal entries to record the two expenditures during 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

-Record the expenditure for routine maintenance and repairs on the equipment.

-Record the expenditure for the major overhaul of the equipment.