Question
Exercise 15-18 (Static) Short-term lease [LO15-5] Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option. Appropriate
Exercise 15-18 (Static) Short-term lease [LO15-5]
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 | 1 year (12 monthly periods) |
| Monthly lease payments | $15,000 at Jan. 1, 2021, through Dec. 1, 2021. |
| Economic life of asset | 5 years |
| Interest rate charged by the lessor | 8% |
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.)
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
