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 inte 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 n 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 1 2 3 4 2 5 6 7 9 10 1 83 A No 1 2 3 4 3 5 6 7 8 9 10 5 11 2 B S.No/Date 4 January 01, 2024 Right-of-use asset Lease payable June 30, 2024 December 31, 202 Lease payable Interest expense Lease payable Interest expense Right-of-use asset B S.No/Date June 30, 2024 June 30, 2024 Right-of-use asset Cash Lease revenue December 31, 202 Cash с Account Title Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. Depreciation expense Accumulated depreciation Lease revenue December 31, 202 Depreciation expense Answer is not complete. с Account Title ✓ Accumulated depreciation ✓ X › › › ✓ X ✓ 33 D Debit 38,077 ✔ ✓ 9,238 9,627 X 373 X D Debit 10,000✔ 9,000✔ 10,000✔ 9,000✔ E Credit 38,077✔ 10,000 X 10,000 X E Credit 10,000✔ 9,000✔ 10,000✔ 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 inte 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 n 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 1 2 3 4 2 5 6 7 9 10 1 83 A No 1 2 3 4 3 5 6 7 8 9 10 5 11 2 B S.No/Date 4 January 01, 2024 Right-of-use asset Lease payable June 30, 2024 December 31, 202 Lease payable Interest expense Lease payable Interest expense Right-of-use asset B S.No/Date June 30, 2024 June 30, 2024 Right-of-use asset Cash Lease revenue December 31, 202 Cash с Account Title Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. Depreciation expense Accumulated depreciation Lease revenue December 31, 202 Depreciation expense Answer is not complete. с Account Title ✓ Accumulated depreciation ✓ X › › › ✓ X ✓ 33 D Debit 38,077 ✔ ✓ 9,238 9,627 X 373 X D Debit 10,000✔ 9,000✔ 10,000✔ 9,000✔ E Credit 38,077✔ 10,000 X 10,000 X E Credit 10,000✔ 9,000✔ 10,000✔ 9,000✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
1
2
3
5
6
7
42
9
10
83
1
A
No
2
3
4
1
5
6
A
No
2
3
7
8
9
10 5
11
B
S.No/Date
January 01, 2024
4
June 30, 2024
B
S.No/Date
Right-of-use asset
Lease payable
December 31, 202 Lease payable
Interest expense
June 30, 2024
Lease payable
Interest expense
June 30, 2024
Right-of-use asset
Right-of-use asset
Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
Cash
Lease revenue
December 31, 202 Cash
с
Account Title
Depreciation expense
Accumulated depreciation
Lease revenue
December 31, 202 Depreciation expense
Answer is not complete.
с
Account Title
✓
Accumulated depreciation
✓
✓
X
✓
✓
X
✓
✓
✓
››
33
D
Debit
38,077 ✔
✓
✓
9,238
9,627 X
X X
373 X
D
Debit
10,000✔
>
9,000✔
10,000✔
9,000✔
E
Credit
38,077
10,000 X
10,000 X
E
Credit
10,000
9,000✔
10,000✔
9,000✔
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