Chem-Lite, Inc., maintains its accounts on the basis of a fiscal year ending March 31. At March 31, 20X1, the Equipment account in the general ledger appeared as shown below. The company uses straight-line depreciation, a 10-year life, and 10 percent salvage value for all its equipment. It is the companys policy to take a full years depreciation on all additions to equipment occurring during the fiscal year, and you may treat this policy as a satisfactory one for the purpose of this problem. The company has recorded depreciation for the fiscal year ended March 31, 20X1. Equipment 4/1/X0 Bal. forward 150,000 12/1/X0 11,000 1/2/X1 1,063 2/1/X1 1,063 3/1/X1 1,063 Upon further investigation, you find the following contract dated December 1, 20X0, covering the acquisition of equipment: List price $ 40,000 5% sales tax 2,000 Total $ 42,900 Down payment 11,000 Balance 31,000 9% interest, 24 months 5,580 Contract amount $ 36,580

Required: Prepare the adjusting entries you would propose as auditor of Chem-Lite, Inc., with respect to the equipment and related depreciation accounts at March 31, 20X1. (Assume that all amounts given are material.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate computations to the nearest whole dollar value.)

1. Record the entry to correct the entries to the Equipment account for the payments on the installment contract originating on December 1, 20X0.

Transaction	General Journal	Debit	Credit
1

2. Record the entry to correct the depreciation taken the equipment purchased under the installment contract originating on December 1, 20X0.

Transaction	General Journal	Debit	Credit
2

I have seen this question solved here on chegg but no proper explanation of how they got some values used to get their final answers. Please if you can do that. It will be helpful in my understanding of this question.