January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, lease eral computers under a two-year operating lease agreement from ComputerWorld Leasing, which tinely finances equipment for other firms at an annual interest rate of 4%. • The contract calls for four rent payments of $10,000 each, payable semiannually on June 30 an December 31 each year. • The computers were acquired by ComputerWorld at a cost of $90,000 and were expected to have a useful life of five years with no residual value. . Both firms record amortization and depreciation semiannually. te: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA HPVAD of $1) EVA OFS1. quired: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of th lease. PVA of $1, FVAD of $1 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of th lease. Complete this question by entering your answers in the tabs below. Required 1 Required 2 epare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account fi termediate calculations and final answers to the nearest whole dollar.
January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, lease eral computers under a two-year operating lease agreement from ComputerWorld Leasing, which tinely finances equipment for other firms at an annual interest rate of 4%. • The contract calls for four rent payments of $10,000 each, payable semiannually on June 30 an December 31 each year. • The computers were acquired by ComputerWorld at a cost of $90,000 and were expected to have a useful life of five years with no residual value. . Both firms record amortization and depreciation semiannually. te: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA HPVAD of $1) EVA OFS1. quired: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of th lease. PVA of $1, FVAD of $1 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of th lease. Complete this question by entering your answers in the tabs below. Required 1 Required 2 epare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account fi termediate calculations and final answers to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $10,000 each, payable semiannually on June 30 and
December 31 each year.
• The computers were acquired by ComputerWorld at a cost of $90,000 and were expected to
have a useful life of five years with no residual value.
. Both firms record amortization and depreciation semiannually.
4
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA 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.
Required 1 Required 2
Prepare appropriate journal entries recorded by ComputerWorld Leasing 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 fie
intermediate calculations and final answers to the nearest whole dollar.
Required 1
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