Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term...

Transcribed Image Text:

Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset 1 year (12 monthly periods) $54,000 at Jan. 1, 2021, through Dec. 1, 2021. 5 years Interest rate charged by the lessor 7% Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 Record the beginning of the lease for Chance. Note: Enter debits before credits Date General Journal Debit Credit Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset 1 year (12 monthly periods) $54,000 at Jan. 1, 2021, through Dec. 1, 2021. 5 years Interest rate charged by the lessor 7% Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 Record the beginning of the lease for Chance. Note: Enter debits before credits Date General Journal Debit Credit