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 $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. (FV of S1. 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 held. (Round your intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet Required 1 Required 2 Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lea- transaction/event, select "No journal entry required in the first account field. (Round your intermedia the nearest whole dollar.) View transaction list Journal entry worksheet Record the beginning of the lease for Nath-Largstrom Services. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2021 Record entry Clear entry View general Journal Required 1 Required 2 Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease transaction/event, select "No journal entry required" in the first account field. (Round your intermediat the nearest whole dollar) View transaction list Journal entry worksheet Record the lease payment received by ComputerWorld Leasing. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Record entry Clear entry Vlew general Journal Required 1 Required 2 Prepare appropriate journal entries recorded by Computer World Leasing for the first year of the lease transaction/event, select "No journal entry required" in the first account field. (Round your intermedia the nearest whole dollar.) View transaction list Journal entry worksheet Record depreciation for ComputerWorld Leasing. Note: Enter debits before credits Date General Journal Debit Credit June 30, 2021 Record entry Clear entry View general Journal Required 1 Required 2 Prepare appropriate journal entries recorded by Computer World Leasing for the first year of the le transaction/event, select "No journal entry required" in the first account field. (Round your interm the nearest whole dollar.) View transaction list Journal entry worksheet as Record depreciation for Computer World Leasing. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general Journal
