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Hulme Company operates a small manufacturing facility as a supplement to its regular service activities....

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Accounting

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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 $ 150,200 51,800 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 $ 7,000 60 The equipment is being depreciated on a straight-line basis over an estimated life of 18 years with a $17,000 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Equipment Cash 2 2 Repair and maintenance expense Cash

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