Question: On January 1 2011 Nath Langstrom Services Inc a computer so

On January 1, 2011, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers from Computer World Corporation under a two-year operating lease agreement. 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 Computer World at a cost of $90,000 and were expected to have a useful life of six years with no residual value.

Prepare the appropriate entries for both
(a) The lessee and
(b) The lessor from the inception of the lease through the end of 2011. (Use straight-line depreciation.)

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  • CreatedJuly 05, 2013
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