A depreciation schedule for heavy equipment of Windsor Road Construction Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data were ascertained.

Balance of Equipment account, Jan. 1, 2018
Equipment No. 1 purchased Jan. 1, 2015, cost		$50,000
Equipment No. 2 purchased July 1, 2015, cost		61,000
Equipment No. 3 purchased Jan. 1, 2016, cost		54,000
Equipment No. 4 purchased July 1, 2017, cost		69,000
Balance, Jan. 1, 2018		$234,000

The Accumulated Depreciation-Equipment account previously adjusted to January 1, 2018, and entered in the ledger, had a balance on that date of $89,000 (depreciation on the four pieces of equipment from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2015. Transactions between January 1, 2018, and December 31, 2021, which were recorded in the ledger, are as follows.

Jan. 1, 2019		Equipment No. 1 was sold for $6,000 cash; entry debited Cash and credited Equipments, $6,000.
July 1, 2019		Equipment No. 2 was traded for a larger one (No. 5), the agreed purchase price of which was $78,000. Windsor Road Construction Co. paid the dealer $65,000 cash on the transaction. The entry was a debit to Equipment and a credit to Cash, $65,000. The transaction has commercial substance.
July 1, 2020		Equipment No. 3 was damaged in a wreck to such an extent that it was sold as junk for $500 cash. Windsor Road Construction Co. received $12,000 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $12,500, and credits to Miscellaneous Income, $500, and Equipment, $12,000.
July 1, 2021		A new Equipment (No. 6) was acquired for $90,000 cash and was charged at that amount to the Equipment account.

Entries for depreciation had been made at the close of each year as follows: 2018, $46,800; 2019, $42,500; 2020, $33,000; 2021, $35,300.

For each of the 4 years, compute separately the increase or decrease in net income arising from the companys errors in determining or entering depreciation or in recording transactions affecting equipment, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

				Per Company Books						As Adjusted						Net
				Equipment dr. (cr.)		Acc. Dep. Equipment dr. (cr.)		Retained Earnings dr. (cr.)		Equipment dr. (cr.)		Acc. Dep., Equipment dr, (cr.)		Retained Earnings dr, (cr.)		Income Overstated (Understated)
1/1/18		Balance		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
12/31/18		Depreciation		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/18		Balances		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
1/1/19		Sale of Equipment #1		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
7/1/19		Purchase Equipment #5		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		Trade Equipment #2		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/19		Depreciation		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/19		Balances		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part
7/1/20		Disposal of Equipment #3		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/20		Depreciation		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/20		Balances		enter a total amount for the third part		enter a total amount for the third part		enter a total amount for the third part		enter a total amount for the third part		enter a total amount for the third part		enter a total amount for the third part		enter a total amount for the third part
7/1/21		Purchase of Equipment #6		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/21		Depreciation		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/21		Balance		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

Prepare one compound journal entry as of December 31, 2021, for adjustment of the Equipment account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2021.

Debit Credit Account Titles and Explanation Debit Credit Account Titles and Explanation