On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a two- year operating lease agreement from Computer World Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. • The contract calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year • The computers were acquired by ComputerWorld at a cost of $101,000 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. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. (Round your intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet 1 2 3 4 5 Record the beginning of the lease for Nath-Langstrom Services.
On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a two- year operating lease agreement from Computer World Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. • The contract calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year • The computers were acquired by ComputerWorld at a cost of $101,000 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. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. (Round your intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet 1 2 3 4 5 Record the beginning of the lease for Nath-Langstrom Services.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh2.
Transcribed Image Text:On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a two-
year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest
rate of 4%.
• The contract calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year
• The computers were acquired by ComputerWorld at a cost of $101,000 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 $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Required:
1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease
2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. (Round your
intermediate calculations and final answers to the nearest whole dollar)
View transaction list
Journal entry worksheet
1
2
3
4
5
Record the beginning of the lease for Nath-Langstrom Services.
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