Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Chance purchased the equipment at a cost of $1,250,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually.

Related Information:
Lease term	1 year (4 quarterly periods)
Quarterly lease payments	$50,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30.
Economic life of asset	5 years
Interest rate charged by the lessor	10%

Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018

a. Record the beginning of the lease for Chance. (Jan 1 2018)

b. Record the lease expense paid by Chance. (Jan 1, 2018)

c. Record the lease expense paid by Chance. (March 31, 2018)

d. Record the lease expense paid by Chance. (June 30, 2018)

e. Record the lease expense paid by Chance. (Sept 30, 2018)