Options are Accumulated Depreciation-Buildings, Accumulated Depreciation- Land Improvements, Accumulated Depreciation-Machinery and Equipment, Buildings, Contract Payable, Depreciation Expense, Gain on Construction of Building, Gain on Sale of Machinery and Equipment, Land, Land Improvements, Loss on Construction of Building, Loss on Sale of Machinery and Equipment, Machinery and Equipment, Paid-In Capital from Donated Assets, Prepaid Rent, Rent Expense

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 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, 20X1. Equipment 4/1/XO Bal. forward 12/1/X0 1/2/X1 2/1/X1 3/1/X1 270,000 12,200 1,189 1,189 1,189 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 ance 9% interest, 24 months Contract amount $34,000 1,700 $35,700 12,200 23,500 4,230 $27,730 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.) Journal entry worksheet 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. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Journal entry worksheet 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. General Journal Debit Credit Transaction 2 Record entry Clear entry View general journal