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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option Appropriate adjusting entries are made annually. Related Information: Lease ter Monthly lease payments Economic life of asset Interest rate charged by the lessor 1 year (12 monthly periods) $44,8ee at Jan. 1, 2021, through Dec. 1, 2021. 5 years Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021 (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 Journal entry worksheet < 1 2 3 4 5 Record the beginning of the lease for Chance. Note: Enter debits before credits General Journal Debit Credit January 01, 2021

Answer 1

Answer
Date	Account Title	Debit	Credit
Jan-01	No Journal Entry required for Beginning of lease(short term lease)
Jan-01	lease expense DR	$     44,000
	Cash CR		$     44,000
	(To record quarterly lease payment)
Feb-01	lease expense DR	$     44,000
	Cash CR		$     44,000
	(To record quarterly lease payment)
Mar-01	lease expense DR	$     44,000
	Cash CR		$     44,000
	(To record quarterly lease payment)
Apr-01	lease expense DR	$     44,000
	Cash CR		$     44,000
	(To record quarterly lease payment)