Exercise $15-18($Algo$)$ Short$-$term lease $[$L$015-5]$

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

Monthly lease payments

Economic life of asset

Interest rate charged by the lessor

$1$ years $(12$ monthly periods$)$ $$48,000$ on January $1,2024,$ through December $1,2024.5$ years $9\%$

Required:

Prepare appropriate entries for Chance from the beginning of the lease through April $1,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the beginning of the lease for Chance.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2024,,,],[,,,],[,,,]]$