Exercise $15-17($Algo$)$ Lessee and lessor; operating lease $[$LO$15-4]$

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 $6\%.$

The contract calls for four rent payments of $$14,000$ each, payable semiannually on June $30$ and December $31$ each year.

The computers were acquired by ComputerWorld at a cost of $$98,000$ and were expected to have a useful life of seven 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:

Prepare appropriate journal entries recorded by Nath$-$Langstrom Services for the first year of the lease.

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.

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 yourOn 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 $6\%.$

The contract calls for four rent payments of $$14,000$ each, payable semiannually on June $30$ and December $31$ each year.

The computers were acquired by ComputerWorld at a cost of $$98,000$ and were expected to have a useful life of seven 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:

Prepare appropriate journal entries recorded by Nath$-$Langstrom Services for the first year of the lease.

Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.