Question

On January 1, 2018, Nath-Langstrom Services, Inc., 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 $14,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $99,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-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 tables provided.)

Required:
Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lease through the end of 2018.

a. record the beginning of the lease for Nath-Langstrom Services (Jan 1, 2018)

b. record the lease payment and interest expense for Nath-Langstrom Services (Jun 30. 2018)

c. record the amortization expense for Nath-Langstrom Services. (Jun 30, 2018)

d. record the lease payment and interest expense for Nath-Langstrom Services.(Dec 31, 2018)

e. record the amortization expense for Nath-Langstrom Services. (Dec 31)

f. record the lease revenue received by ComputerWorld Leasing (Jun 30. 2018

g. record the Depreciation expense for ComputerWorld Leasing. (Jun 30, 2018)

h. record the lease revenue received by ComputerWorld Leasing. (dec 31, 2018)

i. record the Depreciation expense for ComputerWorld Leasing. (Dec 31, 2018)

I was given wrong answer last time I asked. So please can someone help me ):

Answer 1