Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1 , 2 0 2 4 , Nath - Langstrom Services, Incorporated, a computer software training firm, leased several computers under a two

On January 1,2024, Nath-Langstrom Services, Incorporated, 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 $10,000 each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $90,000 and were expected to have a useful life of five years with no residual value.
Both firms record amortization and depreciation semiannually.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
Note: 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.
Journal entry worksheet
Record the beginning of the lease for Nath-Langstrom Services.
Note: Enter debits before credits.
Date General Journal Debit Credit
January 01,2024
Record the lease payment made by Nath-Langstrom Services.
Note: Enter debits before credits.
Date General Journal Debit Credit
June 30,2024
Record amortization for Nath-Langstrom Services.
Note: Enter debits before credits.
Date General Journal Debit Credit
June 30,2024
Record the lease payment made by Nath-Langstrom Services.
Note: Enter debits before credits.
Date General Journal Debit Credit
December 31,2022

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

Financial Accounting Text Only

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

5th Edition

0006575404, 978-0006575405

More Books

Students also viewed these Accounting questions

Question

Explain the multicultural organization development (MCOD) process.

Answered: 1 week ago