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On January 1, 2011, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers from Computer World Corporation under a two-year operating lease agreement. The contract calls for four rent payments of $10,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computer World at a cost of $90,000 and were expected to have a useful life of six years with no residual value.
Required:
Prepare the appropriate entries for both
(a) The lessee and
(b) The lessor from the inception of the lease through the end of 2011. (Use straight-line depreciation.)
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