Journal entry worksheet 1) Record the beginning of the lease for Nath-Langstrom

Question

Journal entry worksheet

1) Record the beginning of the lease for Nath-Langstrom Services.
2)Record the lease payment abd interest expense for Nath-Langstrom Services
3) Record the amortization expense for Nath-Langstrom Services
4) Record the lease payment and interest expense for Nath-Langstrom Services
5) Record the amortization expense for Nath-Langstrom Services
6) Record the lease revenue received by computer World Leasing
7)Record the Depreciation expense for Computer world Leasing
8) Record the lease revenue received by computerworkd Leasing
9)Record the Depreciation expense for Computer World Leasing

r 15 Homework Assignment Help Save Saved CI On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a t wo-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other fi irms at an annual interest rate of 6%. The contract calls for four rent payments of $11,500 each, payable semiannually on June 30 and December 31 each yea r. The computers were acquired by ComputerWorld at a cost of $93,000 and were expected to have a useful life residual value. Both firms record depreciation semi-annually PVAD of $1) (Use appropriate factor(s) from the tables provided.) of Five years with no ation and depreciation semi-annually FV of $1, PV of S1, FVA of $1, PVA of $1, FVAD of $1 and Required Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lea entry is required for a transaction/even calculations to the nearest whole dollar amount.) t, select "No journal entry required" in the first account field. Round your intermediate View transaction list Journal entry worksheet 6 7 9 Record the beginning of the lease for Nath-Langstrom Services. K Prev 8 of 9Next > to search

Explanation / Answer

As it's a operating lease, therefore no entry is required at the time of inception of lease. Further. rent payment is not dividend into interest and lease component i.e. whole amount of rent is expensed.

a) Nath-Langstrom Services, Inc. (Lessee)

b)  Computer World Corporation (Lessor)

No entry is required for number 3 and 5.

Date Account Title and Explanation Debit Credit 2018 Jan-01 No Journal Entry Required Jun-30 Rent Expense 11500    Cash 11500 (To record the rent of leased computer) Dec-31 Rent Expense 11500    Cash 11500 (To record the rent of leased computer)

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