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

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

$1$ years $(12$ monthly periods$)$

Economic life of asset

$$68,000$ on January $1,2024,$ through December $1,2024.$

Interest rate charged by the lessor

$5$ 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.