On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under...

 

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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 $12,500 each, payable semiannually on June 30 and December 31 each year. • The computers were acquired by ComputerWorld at a cost of $95,000 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: 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. Complete this question by entering your answers in the tabs below. Dequired 1 X Answer is not complete. Dequired 2 8 10 points Mc Graw Hill Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) 1 No 2 3 4 Date January 01, 2024 Right-of-use asset Lease payable June 30, 2024 June 30, 2024 Interest expense Lease payable Cash Amortization expense Right-of-use asset December 31, 202 Interest expense Lease payable Cach General Journal < Prev 8 of 11 Next > Debit Return to question Credit 8 10 points Mc Graw Hill No 1 2 4 LO 5 Date January 01, 2024 Right-of-use asset Lease payable June 30, 2024 June 30, 2024 Interest expense Lease payable Cash Amortization expense Right-of-use asset December 31, 202 Interest expense Lease payable Cash December 31, 202 Amortization expense Right-of-use asset General Journal < Prev Required 1 8 of 11 Required 2 Next > > Debit Credit Return to question 8 10 points Mc Graw Hill Required 1 Required 2 Prepare appropriate journal entries recorded by ComputerWorld Leasing 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.) No 1 2 3 4 LO 5 Date January 01, 2024 No journal entry required June 30, 2024 June 30, 2024 Cash Lease revenue Depreciation expense Accumulated depreciation December 31, 202 Cash Lease revenue General Journal December 31, 202 Depreciation expense Accumulated depreciation < Prev 8 of 11 Next > Debit Return to question Credit 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 $12,500 each, payable semiannually on June 30 and December 31 each year. • The computers were acquired by ComputerWorld at a cost of $95,000 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: 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. Complete this question by entering your answers in the tabs below. Dequired 1 X Answer is not complete. Dequired 2 8 10 points Mc Graw Hill Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) 1 No 2 3 4 Date January 01, 2024 Right-of-use asset Lease payable June 30, 2024 June 30, 2024 Interest expense Lease payable Cash Amortization expense Right-of-use asset December 31, 202 Interest expense Lease payable Cach General Journal < Prev 8 of 11 Next > Debit Return to question Credit 8 10 points Mc Graw Hill No 1 2 4 LO 5 Date January 01, 2024 Right-of-use asset Lease payable June 30, 2024 June 30, 2024 Interest expense Lease payable Cash Amortization expense Right-of-use asset December 31, 202 Interest expense Lease payable Cash December 31, 202 Amortization expense Right-of-use asset General Journal < Prev Required 1 8 of 11 Required 2 Next > > Debit Credit Return to question 8 10 points Mc Graw Hill Required 1 Required 2 Prepare appropriate journal entries recorded by ComputerWorld Leasing 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.) No 1 2 3 4 LO 5 Date January 01, 2024 No journal entry required June 30, 2024 June 30, 2024 Cash Lease revenue Depreciation expense Accumulated depreciation December 31, 202 Cash Lease revenue General Journal December 31, 202 Depreciation expense Accumulated depreciation < Prev 8 of 11 Next > Debit Return to question Credit