question #2 On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a t year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual inter 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. Required: Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. Answer is not complete. A No B с S.No/Date Account Title 1 1 January 01, 2024 Right-of-use asset 2 Lease payable 3 4 2 June 30, 2024 Lease payable 5 Interest expense 6 Right-of-use asset 7 8 3 December 31, 202 Lease payable 9 Interest expense 10 Right-of-use asset D E Debit Credit 38,077 38,077 9,238 9,627 373 x × ☑ Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. Answer is not complete. 10,000 10,000 A No B S.No/Date C Account Title 1 2 June 30, 2024 Cash 2 Lease revenue D E Debit Credit 10,000 10,000 3 4 3 June 30, 2024 Depreciation expense 9,000 > 5 Accumulated depreciation 9,000 6 7 4 December 31, 202 Cash 8 Lease revenue 10,000 10,000 9 10 5 December 31, 202 Depreciation expense 9,000 11 Accumulated depreciation 9,000
question #2 On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a t year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual inter 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. Required: Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. Answer is not complete. A No B с S.No/Date Account Title 1 1 January 01, 2024 Right-of-use asset 2 Lease payable 3 4 2 June 30, 2024 Lease payable 5 Interest expense 6 Right-of-use asset 7 8 3 December 31, 202 Lease payable 9 Interest expense 10 Right-of-use asset D E Debit Credit 38,077 38,077 9,238 9,627 373 x × ☑ Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. Answer is not complete. 10,000 10,000 A No B S.No/Date C Account Title 1 2 June 30, 2024 Cash 2 Lease revenue D E Debit Credit 10,000 10,000 3 4 3 June 30, 2024 Depreciation expense 9,000 > 5 Accumulated depreciation 9,000 6 7 4 December 31, 202 Cash 8 Lease revenue 10,000 10,000 9 10 5 December 31, 202 Depreciation expense 9,000 11 Accumulated depreciation 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:question #2
On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under a t
year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual inter
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.
Required:
Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
Answer is not complete.
A
No
B
с
S.No/Date
Account Title
1
1
January 01, 2024 Right-of-use asset
2
Lease payable
3
4 2
June 30, 2024
Lease payable
5
Interest expense
6
Right-of-use asset
7
8 3
December 31, 202 Lease payable
9
Interest expense
10
Right-of-use asset
D
E
Debit
Credit
38,077
38,077
9,238
9,627
373 x
× ☑
Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
Answer is not complete.
10,000
10,000
A
No
B
S.No/Date
C
Account Title
1 2
June 30, 2024
Cash
2
Lease revenue
D
E
Debit
Credit
10,000
10,000
3
4
3
June 30, 2024
Depreciation expense
9,000
>
5
Accumulated depreciation
9,000
6
7
4
December 31, 202 Cash
8
Lease revenue
10,000
10,000
9
10 5
December 31, 202 Depreciation expense
9,000
11
Accumulated depreciation
9,000
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