Chem-Lite Incorporated, maintains its accounts on the basis of a fiscal year ending March 31. At...

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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, 20X1. Equipment 4/1/X0 Bal. forward 12/1/X0 1/2/X1 270,000 12,200 1,189 2/1/X1 3/1/X1 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 $34,000 1,700 $35,700 Down payment 12,200 Balance 23,500 9% interest, 24 months 4,230 Contract amount $27,730 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 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, 20X1. Equipment 4/1/X0 Bal. forward 12/1/X0 1/2/X1 270,000 12,200 1,189 2/1/X1 3/1/X1 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 $34,000 1,700 $35,700 Down payment 12,200 Balance 23,500 9% interest, 24 months 4,230 Contract amount $27,730 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