Exercise 15-17 (Algo) Lessee and lessor; operating lease [LO15-4] 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 $18,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $107,000 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. 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.) No 1 Date January 01, 2021 Right-of-use asset Lease payable 2 June 30, 2021 Interest expense Lease payable Cash 3 June 30, 2021 Amortization expense Right-of-use asset 4 5 December 31, 202 Interest expense Lease payable Cash December 31, 202 Amortization expense Right-of-use asset General Journal Debit Credit --- Required 1 Required 2 Prepare appropriate journal entries recorded by ComputerWorld Leasing 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.) No 1 Date June 30, 2021 Cash Lease revenue General Journal 2 June 30, 2021 Depreciation expense Accumulated depreciation 3 December 31, 202 Cash Lease revenue 4 December 31, 202 Depreciation expense Accumulated depreciation < Required 1 Required 2 > Debit Credit