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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
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 1 years (12 monthly periods) Monthly lease payments $44,000 on January 1, 2024, through December 1, 2024. Economic life of asset 5 years Interest rate charged by the lessor 7%
Required:
Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024.
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 | 1 | years (12 monthly periods) |
| Monthly lease payments | $44,000 | on January 1, 2024, through December 1, 2024. |
| Economic life of asset | 5 | years |
| Interest rate charged by the lessor | 7% |
Required:
Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024.
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