On January 1,2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased several computers under...
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On January NathLangstrom Services, Incorporated, a computer software training firm, leased several computers under a twoyear operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of The contract calls for four rent payments of $ each, payable semiannually on June and December each year. The computers were acquired by ComputerWorld at a cost of $ 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 $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $ Required: Prepare appropriate journal entries recorded by NathLangstrom Services for the first year of the lease. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
On January NathLangstrom Services, Incorporated, a computer software training firm, leased several computers under a twoyear operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of
The contract calls for four rent payments of $ each, payable semiannually on June and December each year.
The computers were acquired by ComputerWorld at a cost of $ 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 $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Prepare appropriate journal entries recorded by NathLangstrom 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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