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 Interent 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 periode)
$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
Interent 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
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 periode) $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 Interent 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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