! 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 $ 139,600 60,300 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 $ 15,000 1,500 The equipment is being depreciated on a straight-line basis over an estimated life of 18 years with a $19,000 estimated residual value. The annual accounting period ends on December 31. E8-7 Part 1 Required: 1. Prepare the adjusting entry that was made at the end of 2019 for depreciation on the manufacturing equipment. (Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Answer is complete but not entirely correct. General Journal Depreciation expense Accumulated depreciation, equipment Credit Debit 8,367 X 1 1 8,367