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

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. Equipment4/1/X0 Bal. forward220,00012/1/X011,7001/2/X16642/1/X16643/1/X1664 Upon further investigation, you find the following contract dated December 1, 20X0, covering the acquisition of equipment: List price$24,0005% sales tax1,200Total$25,200Down payment11,700Balance13,5009% interest, 24 months2,430Contract amount$15,930 Required: 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.) Note: 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. 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. Upon further investigation, you find the following contract dated December 1, 20X0, covering the acquisition of equipment: Required: 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.) Note: 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.