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 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 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.

JOURNAL ENTRIES NEEDED

Import a new list

• 1

  Record the beginning of the lease for Nath-Langstrom Services.

• 2

  Record the lease payment and interest expense for Nath-Langstrom Services.

• 3

  Record the amortization expense for Nath-Langstrom Services.

• 4

  Record the lease payment and interest expense for Nath-Langstrom Services.

• 5

  Record the amortization expense for Nath-Langstrom Services.

• 6

  Record the lease revenue received by ComputerWorld Leasing.

• 7

  Record the Depreciation expense for ComputerWorld Leasing.

• 8

  Record the lease revenue received by ComputerWorld Leasing.

• 9

  Record the Depreciation expense for ComputerWorld Leasing.