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.

Required 1:

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.)

Journal Entry Worksheet:

1. Jan 1, 2021: Record the beginning of the lease for Nath-Langstrom Services.

2. June 30, 2021: Record the lease payment made by Nath-Langstrom Services.

3. June 30, 2021: Record amortization for Nath-Langstrom Services.

4. Dec 31, 2021: Record the lease payment made by Nath-Langstrom Services.

5. Dec 31, 2021: Record amortization for Nath-Langstrom Services.

Required 2:

Journal entry worksheet:

1. June 30, 2021: Record the lease payment received by ComputerWorld Leasing.

2. June 30, 2021: Record depreciation for ComputerWorld Leasing.

3. Dec 31, 2021: Record the lease payment received by ComputerWorld Leasing.

4. Dec 31, 2021: Record depreciation for ComputerWorld Leasing.