On January 1, 2018, Nath-Langstrom Services, Inc., a computersoftware training firm, leased several computers under a two-yearoperating lease agreement from ComputerWorld Leasing, whichroutinely finances equipment for other firms at an annual interestrate of 4%. The contract calls for four rent payments of $15,500each, payable semiannually on June 30 and December 31 each year.The computers were acquired by ComputerWorld at a cost of $101,000and were expected to have a useful life of Five years with noresidual value. Both firms record amortization and depreciationsemi-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 thetables provided.)
Required:
Prepare the appropriate entries for both the lessee and the lessorfrom the beginning of the lease through the end of 2018
