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 $18,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $106,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $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.

Journal Entries for Part 1:

1: Record the beginning of the lease for Nath-Langstrom Services

2: Record the lease payment made by Nath-Langstrom Services

3: Record amortization for Nath-Langstrom Services

4: Record the lease paymetn made by Nath-Langstrom Services

5: Record amortization for Nath-Langstrom services

Journal Entries for Part 2:

1: Record the lease payment received by ComputerWorld Leasing

2: Record depreciation for ComputerWorld Leasing

3: Record the lease payment received by ComputerWorld Leasing

4: Record depreciation for ComputerWorld Leasing

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 field. (Round your intermediate calculations and final answers to the nearest whole dollar.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Date January 01, 2021 Right-of-use asset Lease payable 2 June 30, 2021 Interest expense Lease payable Cash 3 June 30, 2021 Amortization expense Right-of-use asset 4 December 31, 2021 Interest expense Lease payable Cash 5 December 31, 2021 Amortization expense Right-of-use asset Required 1 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.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Date June 30, 2021 Cash Lease revenue 2 June 30, 2021 Depreciation expense Accumulated depreciation December 31, 2021 Cash Lease revenue 4 December 31, 2021 Depreciation expense Accumulated depreciation