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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

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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