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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 $120,000 63,000 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 $18,000 2,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $15,000 estimated residual value. The annual accounting period ends on December 31. Required: Prepare the adjusting entry that should be made by Hulme Company at the end of 2020 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)

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 $120,000 63,000 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 $18,000 2,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $15,000 estimated residual value. The annual accounting period ends on December 31. Required: Prepare the adjusting entry that should be made by Hulme Company at the end of 2020 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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 $120,000 63,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $15,000 estimated residual value. The annual accounting period ends on December 31. View transaction list Required: Prepare the adjusting entry that should be made by Hulme Company at the end of 2020 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) Journal entry worksheet $18,000 2,000 Record the adjusting entry for depreciation of the manufacturing equipment, assuming no changes in the original estimated life or residual value. Note: Enter debits before credits.
Transcribed Image Text: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 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 $120,000 63,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $15,000 estimated residual value. The annual accounting period ends on December 31. View transaction list Required: Prepare the adjusting entry that should be made by Hulme Company at the end of 2020 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) Journal entry worksheet $18,000 2,000 Record the adjusting entry for depreciation of the manufacturing equipment, assuming no changes in the original estimated life or residual value. Note: Enter debits before credits.
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