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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the...

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Accounting

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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