Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor $48,000 5 9% years (12 monthly periods) on January 1, 2024, through December 1, 2024. years Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor $48,000 5 9% years (12 monthly periods) on January 1, 2024, through December 1, 2024. years Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 2E: Lessee Accounting with Payments Made at Beginning of Year Adden Company signs a lease agreement...
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Question
s
![Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term
lease option. Appropriate adjusting entries are made annually.
Related Information:
Lease term
Monthly lease payments
Economic life of asset
Interest rate charged by the lessor
View transaction liet
Journal entry worksheet
Required:
Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.
1
2
3
Note: Enter debits before credits.
Date
January 01, 2024
Record the beginning of the lease for Chance.
Record entry
5
$48,000
5
9%
1
General Journal
Clear entry
years (12 monthly periods)
on January 1, 2024, through December 1, 2024.
years
Debit
Credit
View general Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb92c7379-e86a-4aad-93a5-9dd6eaca4770%2F479dfa17-87cf-4fd1-887b-90591a8e10d8%2Fm13fnn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term
lease option. Appropriate adjusting entries are made annually.
Related Information:
Lease term
Monthly lease payments
Economic life of asset
Interest rate charged by the lessor
View transaction liet
Journal entry worksheet
Required:
Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.
1
2
3
Note: Enter debits before credits.
Date
January 01, 2024
Record the beginning of the lease for Chance.
Record entry
5
$48,000
5
9%
1
General Journal
Clear entry
years (12 monthly periods)
on January 1, 2024, through December 1, 2024.
years
Debit
Credit
View general Journal
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