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5 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 4%. • The contract calls for four rent payments of $10,500 each, payable semiannually on June 30 and December 31 each year. ⚫ The computers were acquired by ComputerWorld at a cost of $91,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 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.) No 1 Date General Journal January 01, 2 Right-of-use asset Debit Credit Lease payable 2 June 30, 202 Interest expense Lease payable Cash 3 June 30, 202 Amortization expense |Right-of-use asset December 31 Interest expense Lease payable Cash December 31 Amortization expense Right-of-use asset 333 < Required 1 Required 2 ›

5 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 4%. • The contract calls for four rent payments of $10,500 each, payable semiannually on June 30 and December 31 each year. ⚫ The computers were acquired by ComputerWorld at a cost of $91,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 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.) No 1 Date General Journal January 01, 2 Right-of-use asset Debit Credit Lease payable 2 June 30, 202 Interest expense Lease payable Cash 3 June 30, 202 Amortization expense |Right-of-use asset December 31 Interest expense Lease payable Cash December 31 Amortization expense Right-of-use asset 333 < Required 1 Required 2 ›

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5 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 4%. • The contract calls for four rent payments of $10,500 each, payable semiannually on June 30 and December 31 each year. ⚫ The computers were acquired by ComputerWorld at a cost of $91,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 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.) No 1 Date General Journal January 01, 2 Right-of-use asset Debit Credit Lease payable 2 June 30, 202 Interest expense Lease payable Cash 3 June 30, 202 Amortization expense |Right-of-use asset December 31 Interest expense Lease payable Cash December 31 Amortization expense Right-of-use asset 333 < Required 1 Required 2 ›
Transcribed Image Text:5 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 4%. • The contract calls for four rent payments of $10,500 each, payable semiannually on June 30 and December 31 each year. ⚫ The computers were acquired by ComputerWorld at a cost of $91,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 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.) No 1 Date General Journal January 01, 2 Right-of-use asset Debit Credit Lease payable 2 June 30, 202 Interest expense Lease payable Cash 3 June 30, 202 Amortization expense |Right-of-use asset December 31 Interest expense Lease payable Cash December 31 Amortization expense Right-of-use asset 333 < Required 1 Required 2 ›
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