Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Quarterly lease payments Economic lite of asset Interent rate charged by the lessor 1 year (4 quarterly periods) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (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.)
Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Quarterly lease payments Economic lite of asset Interent rate charged by the lessor 1 year (4 quarterly periods) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the
equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made
annually.
Related Information:
1 year (4 quarterly periods)
$56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30.
5 years
Lease term
Quarterly lease payments
Economic lite of anset
Interest rate charged by the lessor
Required:
Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (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
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