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 Computer World Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $15,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computerworld at a cost of $100,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-annually. (PV of $1 PV of S1, FVA of $1. PVA of S1, FVAD of $1 and PVAD of S1 (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 (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) 3 Answer is not complete. General Journal Credit No 1 Date January 01, 2018 Right-of-use asset Lease payable Debit 57,116 57,116 2 June 30, 2018 13 858 Lease payable Interest expense Cash OO OOO OO 15.000 June 30, 2018 7,139 X Amortization expense Right-of-use asset 4 December 31, 201 Lease payable Interest expense Cash 15 000 5 December 31, 201 Amortization expense Right-of-use asset 7 139 X June 30, 2018 Cash 15.000 Lease revenue 15.000 June 30, 2018 TO 20.000 Depreciation expense Accumulated depreciation 20.000 15,000 December 31, 201 Cash Lease revenue 15,000 December 31, 201 Depreciation expense Accumulated depreciation 20.000 20.000

Answer 1

solution Dear student, here I am the entries, which were prouiding your incorrect by you. NO 3 Date June 30, General Journal Amortization expense Right of use Debit (8) credit (8) 13,858 13,858 (W. NO-1) asset (5) December 31 14, 135 Amortization expense Right of use asset (W.NO - 1) gov 14.35 10.000 Junerso 10.000 2018 Depreciation Calense Accumulated depreciation (1,00,000) ska / @ December 31. 10.000 Defreclation expense Accomutato Depreciation 2018 10,000

schedule working Nok? I Amortization Date payments effective Decrease interest outstanding Balance Balance (ar youtstanding balance) 57, 116 (15.000x3.80773) (i=2%, n=4) 43, 258 29.123 6130118 15.000 1142.0 865.. 13,858 14,135 12 131118 )5,000
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