Exercise 15-17 (Algo) Lessee and lessor; operating lease LO15-4 On January 12024, Nath - Langstrom Services Incorporated, a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasingwhich routinely finances equipment for other firms at an annual interest rate of 4% The contract calls for four rent payments of $15,000 each payable semiannually on June 30 and December 31 each year The computers were acquired by ComputerWorld at a cost of $100,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually Note: Use tables Excel, or a financial calculator (FV of 1PV of 1FVA of PVA of 1EVAD of $1 and PVAD of 1) Required: Prepare appropriate journal entries recorded by Nath - Langstrom Services for the first year of the lease Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.