Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Third Bank Leasing purchased the equipment at a cost of $1,000,000. Chance elected the short-term lease option.

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.