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 $16,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $102,000 and were expected to have a useful life of six 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: 1a. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.

1- 01/01/2021 - Record the beginning of the lease for Nath-Langstrom Services.

2- 06/30/2021 - Record the lease payment made by Nath-Langstrom Services.

3- 06/30/2021 - Record amortization for Nath-Langstrom Services.

4- 12/31/2021 - Record the lease payment made by Nath-Langstrom Services.

5- 12/31/2021 - Record amortization for Nath-Langstrom Services.

1b. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.

1- 06/30/2021 - Record the lease payment received by ComputerWorld Leasing.

2- 06/30/2021 - Record depreciation for ComputerWorld Leasing.

3- 12/31/2021 - Record the lease payment received by ComputerWorld Leasing.

4- 12/31/2021 - Record depreciation for ComputerWorld Leasing.