Here is the transaction list:
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1 - Record the beginning of the lease for Nath-Langstrom Services. (January 1st, 2018)
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2 - Record the lease payment and interest expense for Nath-Langstrom Services. (June 30th, 2018)
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3 - Record the amortization expense for Nath-Langstrom Services. (June 30th, 2018)
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4 - Record the lease payment and interest expense for Nath-Langstrom Services. (December 31, 2018)
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5 - Record the amortization expense for Nath-Langstrom Services. (December 31, 2018)
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6 - Record the lease revenue received by ComputerWorld Leasing. (June 30th, 2018)
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7 - Record the Depreciation expense for ComputerWorld Leasing. (June 30th, 2018)
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8 - Record the lease revenue received by ComputerWorld Leasing. (December 31st, 2018)
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9 - Record the Depreciation expense for ComputerWorld Leasing. (December 31st, 2018)
On January 1, 2018, 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 6%. The contract calls for four rent payments of $11,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computerworld at a cost of $92,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-annually (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: Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lease through the end of 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Record the beginning of the lease for Nath-Langstrom Services. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Record entry Clear entry View general journal On January 1, 2018, 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 6%. The contract calls for four rent payments of $11,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computerworld at a cost of $92,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-annually (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: Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lease through the end of 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Record the beginning of the lease for Nath-Langstrom Services. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Record entry Clear entry View general journal
