Chem-Lite Incorporated, 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 company's policy to take a full year's 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, 201. Equipment 4/1/X0 Bal. forward 12/1/X0 1/2/X1 2/1/X1 3/1/X1 150,000 11,000 1,063 1,063 1,063 Upon further investigation, you find the following contract dated December 1, 20X0, covering the acquisition of equipment: List price 5% sales tax Total Down payment Balance 9% interest, 24 months Contract amount Required: $40,000 2,000 $42,000 11,000 31,000 5,580 $36,580 Prepare the adjusting entries you would propose as auditor of Chem-Lite Incorporated, 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.) View transaction list Journal entry worksheet A B Record the entry to correct the entries to the Equipment account for the payments on the installment contract originating on December 1, 20X0. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry View transaction list Journal entry worksheet < A B Record the entry to correct the depreciation taken the equipment purchased under the installment contract originating on December 1, 20X0. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal