On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
60.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2018, Nath-Langstrom Services, Inc., a computersoftware training firm, leased several computers under a two-yearoperating lease agreement from ComputerWorld Leasing, whichroutinely finances equipment for other firms at an annual interestrate of 4%. The contract calls for four rent payments of $17,500each, payable semiannually on June 30 and December 31 each year.The computers were acquired by ComputerWorld at a cost of $105,000and were expected to have a useful life of Six years with noresidual value. Both firms record amortization and depreciationsemi-annually. (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 tablesprovided.)
Required: Prepare the appropriate entries for both the lesseeand the lessor from the beginning of the lease through the end of2018. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field. Round yourintermediate calculations to the nearest whole dollar amount.)
On January 1, 2018, Nath-Langstrom Services, Inc., a computersoftware training firm, leased several computers under a two-yearoperating lease agreement from ComputerWorld Leasing, whichroutinely finances equipment for other firms at an annual interestrate of 4%. The contract calls for four rent payments of $17,500each, payable semiannually on June 30 and December 31 each year.The computers were acquired by ComputerWorld at a cost of $105,000and were expected to have a useful life of Six years with noresidual value. Both firms record amortization and depreciationsemi-annually. (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 tablesprovided.)
Required: Prepare the appropriate entries for both the lesseeand the lessor from the beginning of the lease through the end of2018. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field. Round yourintermediate calculations to the nearest whole dollar amount.)
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.