Acct2206 Registration xyD ch. 15 Test e C ezto.mheducation.com/hm.tpx 6. 10.00 p
ID: 2537297 • Letter: A
Question
Acct2206 Registration xyD ch. 15 Test e C ezto.mheducation.com/hm.tpx 6. 10.00 points Exercise 15-1 Operating lease [L015-4] On January 1, 2016, Nath Langstrom Services, Inc, a computer software training firm, leased several computers from ComputerWorld Corporation under a two-year operating lease agreement. The contract calls for four rent paymenms of $11 500 each, payable semiannually an June 30 and December 31 each year The cormguters were acquired by CompusterWorld at a cost of $93,000 and were expected to have a useful life of eight years with no residual value Prepare the appropriate entries for the lessee (Use straight-ine depreciation ) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Mew transaction Iist Journal entry worksheet Record the loase payment for Jute 30, 2016 June 30, 2015 Prepare the appropriadte entries Sor the lesanr tom the inception of the lease through the ond of 2016, (tise equired in the fiest account Fied TOSHIBA 2 3 4 5 tabExplanation / Answer
In the books of Nath-Langstrom(Lessee) Date Account title & Explanation Debit Credit Amount in $ Amount in $ June 30, 2016 Lease Rental expense 11500 Cash 11500 To record the semiannual lease rental payment December 31, 2016 Lease Rental expense 11500 Cash 11500 To record the semiannual lease rental payment In the books of ComputerWorld Corporation(lessor) Date Account title & Explanation Debit Credit Amount in $ Amount in $ June 30, 2016 Cash 11500 Lease Rental Income 11500 To record the semiannual lease rental income December 31, 2016 Cash 11500 Lease Rental Income 11500 To record the semiannual lease rental income December 31, 2016 Depreciation-leased computers 11625 =93000/8 years Accumulated depreciation(Leased computers) 11625 To record the depreciation expense on the leased asset Note : for next year i.e. 2017 the same set of above general journal will follow in the books of lessor as well as lessee