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
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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Financial Accounting An Introduction
Authors: Alex Watson, Jacqui Kew
5th Edition
0190425520, 978-0190425524
