Determining Financial Statement Effects of Straight-Line Depreciation and Repairs [LO 9-2, LO 9-3] Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances: Equipment $ 280,000 Accumulated Depreciation (beginning of the year) 130,000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 2,850 Major overhaul of the equipment that improved efficiency 34,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $20,000 estimated residual value. The annual accounting period ends on December 31. Required: Prepare the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment. Starting at the beginning of 2018, what is the remaining estimated life? Prepare the journal entries to record the two expenditures for repairs and maintenance during 2018.