Question

On January, 1, 2018, Nath-Langstorm services, inc, a computer software training firm, leased several customers under a 2 year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an anuual interest rate of 4%. The contract calls for 4 rent payemnts of 16,500.00 each, payable semiannually on JUne 30 and December 31 each year. the computers were acquired by ComputerWorld at a cost of 103,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annully. (use appropriate charts). Prepare the appropriate entries for both the leasee and the lessor from the beginning of the lease through the end of 2018.

1. Record the beginning of the lease for Nath-Langstorm

2.Record the lease payment and interest expense for Nath

3. Record the amortization expense for Nath

4. Record the lease payment and interest expense for Nath

5. Record the amortization expense for Nath

6. Record the lease revenue received by computerworld

7. Record the deprecation expense for computerworld

8 Record the lease revenue received by computerworld

9. Record the depreciation expense for Computerworld

Answer 1