Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

do the following entries: Requirement 1: Record the beginning of the lease for Nath-Langstrom Services. Record the lease payment made by Nath-Langstrom Services. Record amortization

do the following entries: Requirement 1: Record the beginning of the lease for Nath-Langstrom Services. Record the lease payment made by Nath-Langstrom Services. Record amortization for Nath-Langstrom Services. Record the lease payment made by Nath-Langstrom Services. Record amortization for Nath-Langstrom Services. Requirement 2: Record the lease payment received by ComputerWorld Leasing. Record depreciation for ComputerWorld Leasing. Record the lease payment received by ComputerWorld Leasing. Record depreciation for ComputerWorld Leasing. On January 1, 2021, Nath-Langstrom Services, Inc., 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 $19,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $109,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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. (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 2 345 Record the beginning of the lease for Nath-Langstrom Services. Note: Enter debits before credits. >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis 1

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th Edition

0133803813, 978-0133803815

More Books

Students also viewed these Accounting questions