### Lease Agreement Journal Entries for Nath-Langstrom Services, IncorporatedOn January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, entered into a two-year operating lease agreement with ComputerWorld Leasing for leasing several computers. The lease terms are as follows:- **Interest Rate**: Annual rate of 4% - **Rent Payments**: Four payments of $12,500 each, payable semiannually on June 30 and December 31 of each year- **Cost and Useful Life of Computers**: Acquired by ComputerWorld at a cost of $95,000 with an expected useful life of five years and no residual value- **Amortization and Depreciation**: Both firms record amortization and depreciation semiannually#### Requirements:1. **Prepare journal entries for Nath-Langstrom Services for the first year of the lease.**2. **Prepare journal entries for ComputerWorld Leasing for the first year of the lease.**Note: Use tables, Excel, or a financial calculator to determine values (PV of $1, FV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1).### Journal Entries for ComputerWorld Leasing - First YearPlease enter the required information into the journal entries as indicated below:#### General Journal Entries| No | Date | Account | Debit | Credit ||----|--------------------|---------------------------|--------|--------|| 1 | January 1, 2024 | No Transaction Recorded | | || 2 | June 30, 2024 | Cash | 12,500 | || | | Lease revenue | | 12,500 || 3 | June 30, 2024 | Depreciation expense | | || | | Accumulated depreciation | | || 4 | December 31, 2024 | Cash | 12,500 | || | | Lease revenue | | 12,500 || 5 | December 31, 2024 | Depreciation expense | | || | | Accumulated depreciation | | |Acquire further details by viewing the transaction list or journal **Journal Entries for Lease Agreement Transactions****Case Scenario:**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 $95,000 and were expected to have a useful life of five years with no residual value.- Both firms record amortization and depreciation semiannually.**Requirements:**1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.**Instructions:**Complete this question by entering your answers in the tabs below.**Journal Entries for Nath-Langstrom Services**| No | Date | General Journal | Debit ($) | Credit ($) ||----|------------------|--------------------------|-----------------|-----------------|| 1 | January 01, 2024 | Right-of-use asset | | || | | Lease payable | | || 2 | June 30, 2024 | Interest expense | | || | | Lease payable | | || | | Cash | | || 3 | June 30, 2024 | Amortization expense | | || | | Right-of-use asset | | || 4 | December 31, 2024| Interest expense | | || | | Lease payable | | || | | Cash | | || 5 | December 31, 2024| Amortization expense | | || | | Right-of-use asset | | |**Note**: Use tables, Excel, or a financial calculator for calculations. Relevant financial formulas are FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of

The journal entry was used by commercial organizations to keep track of their financial transactions…

5 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%. Book Hint Print ferences • 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.

5 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%. Book Hint Print ferences • 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.

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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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 $18,500 each, payable semiannually on June 30 and December 31 each year. • The computers were acquired by ComputerWorld at a cost of $107,000 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.
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 $20,000 each, payable semiannually on June 30 and December 31 each year. • The computers were acquired by ComputerWorld at a cost of $110,000 and were expected to have a useful life of eight 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…
On 1/1/21, Sargento leased equipment under a two-year operating lease agreement from Great American Leasing, which typically finances equipment for other companies at an annual interest rate of 4%. The lease documentation calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Great Amerian Leasing at a cost of $101,000 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 Great American Leasing for the first year of the lease.
6. Explosive Leasing acquires equipment and leases it to customers under long-term sales-type leases. Explosive earns interest under these arrangements at a 6% annual rate. Explosive purchased a device and then leased it for $342,400 under an arrangement that specified annual payments to be received for five years, beginning at the commencement of the lease. The lessee had the option to purchase the device at the end of the lease term for $49,650 when it was expected to have a residual value of $99,300. Calculate the amount of the annual lease payments. (Do not round intermediate calculations. Round your answer to nearest whole dollar amount.)The present value of $1: n = 5, i = 6% is 0.74726.The present value of an ordinary annuity of $1: n = 5, i = 6% is 4.21236.The present value of an annuity due of $1: n = 5, i = 6% is 4.46511.
13. Concord Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $162,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of $54,800 payable each December 31, beginning December 31, 2019. An interest rate of 6% is implicit in the lease agreement. Collectibility of the rentals is not probable.Prepare any journal entry for Concord on December 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Universal Leasing leases electronic equipment to a variety of businesses. The company's primary service is providing alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. ⚫ Universal earns interest under these arrangements at a 10% annual rate. • The company leased an electronic typesetting machine it purchased for $36,900 to a local publisher, Desktop Incorporated, on December 31, 2023. The lease contract specified annual payments of $8,353 beginning January 1, 2024, the beginning of the lease, and each December 31 through 2025 (three-year lease term). ⚫ The publisher had the option to purchase the machine on December 30, 2026, the end of the lease term, for $18,700 when it was expected to have a residual value of $22,700, a sufficient difference that exercise seems reasonably certain. 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. Show how…
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