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I will give thumbs up for correct answers!! On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a
I will give thumbs up for correct answers!!
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 $19,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $108,000 and were expected to have a useful life of eight 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. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 1 Required 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.) Show less No Date General Journal Debit Credit 1 June 30, 202 Cash 19,000 Lease revenue 19,000 2 10,800X June 30, 202 Depreciation expense Accumulated depreciation 10,800X 3 December 31 Cash 19,000 Lease revenue 19,000 4 10,800X December 31Depreciation expense Accumulated depreciation So 10,800 xStep by Step Solution
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