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On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from Computer World Leasing,
On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from Computer World Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $14,500 each payable semiannually on June 30 and December 31 each year. The computers were acquired by Computerworld at a cost of $99,000 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. EVA of $1. PVA Of S1. EVAD 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 entry worksheet 1 2 3 4 5 > Record the beginning of the lease for Nath-Langstrom Services. Note: Enter debits before credits Debit Credit Date General Journal January 01, 2021 Right-of-use asset Lease payable Journal entry worksheet 2 3 4 5 > Record the lease payment made by Nath-Langstrom Services Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2021 Roland Journal entry worksheet Record the lease payment received by ComputerWorld Leasing. Note: Enter debits before credits General Journal Date June 30, 2021 Debit Credit Journal entry worksheet Record depreciation for ComputerWorld Leasing. Note: Enter debits before credits. General Journal Date June 30, 2021 Debit Credit Journal entry worksheet Record the lease payment received by ComputerWorld Leasing. Note: Enter debits before credits. Date December 31, 2021 General Journal Debit Credit Journal entry worksheet Record depreciation for Computer World Leasing. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021
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