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Exercise 15-17 (Algo) Lessee and lessor; operating lease LO15-4 On January 12024, Nath - Langstrom Services Incorporated, a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasingwhich routinely finances equipment for other firms at an annual interest rate of 4% The contract calls for four rent payments of $15,000 each payable semiannually on June 30 and December 31 each year The computers were acquired by ComputerWorld at a cost of $100,000 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 1PV of 1FVA of PVA of 1EVAD 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

Exercise 15-17 (Algo) Lessee and lessor; operating lease LO15-4 On January 12024, Nath - Langstrom Services Incorporated, a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasingwhich routinely finances equipment for other firms at an annual interest rate of 4% The contract calls for four rent payments of $15,000 each payable semiannually on June 30 and December 31 each year The computers were acquired by ComputerWorld at a cost of $100,000 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 1PV of 1FVA of PVA of 1EVAD 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 15-17 (Algo) Lessee and lessor; operating lease LO15-4 On January 12024, Nath - Langstrom Services Incorporated, a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasingwhich routinely finances equipment for other firms at an annual interest rate of 4% The contract calls for four rent payments of $15,000 each payable semiannually on June 30 and December 31 each year The computers were acquired by ComputerWorld at a cost of $100,000 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 1PV of 1FVA of PVA of 1EVAD 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
Transcribed Image Text:Exercise 15-17 (Algo) Lessee and lessor; operating lease LO15-4 On January 12024, Nath - Langstrom Services Incorporated, a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasingwhich routinely finances equipment for other firms at an annual interest rate of 4% The contract calls for four rent payments of $15,000 each payable semiannually on June 30 and December 31 each year The computers were acquired by ComputerWorld at a cost of $100,000 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 1PV of 1FVA of PVA of 1EVAD 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
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