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 $17,500each, payable semiannually on June 30 and December 31 each year.The computers were acquired by ComputerWorld at a cost of $105,000and were expected to have a useful life of Six 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 the tablesprovided.)
Required: Prepare the appropriate entries for both the lesseeand the lessor from the beginning of the lease through the end of2018. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field. Round yourintermediate calculations to the nearest whole dollar amount.)
