Prepare the journal entries to record the two expenditures during 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare the journal entries to record the two expenditures during 2020.

Required information E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 (The following information applies to the questions displayed below.) Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2019 $ 122,500 55,200 During 2020, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2, 2020, that improved efficiency Routine maintenance and repairs on the equipment $ 8,000 1,500 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $19,000 estimated residual value. The annual accounting period ends on December 31. Required: 3. Prepare the journal entries to record the two expenditures during 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 1 6,900 Depreciation expense Accumulated depreciation, equipment Repair and maintenance expense 6,900 1,500 X Cash 1,500 2 2 8,000 X Equipment Cash 8,000 X