On January 1, 2018, Duncan-Lang Services, Inc

question 50

Essay

On January 1, 2018, Duncan-Lang Services, Inc. a computer software training firm, leased several computers under a two-year operating lease agreement from Neble Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Neble at a cost of $360,000 and were expected to have a useful life of five years with no residual value. Appropriate adjusting entries are recorded at the end of each quarter.
Required: Prepare the appropriate journal entries for both (a) the lessee and (b) the lessor from the beginning of the lease through the end of 2018. Round your answers to the nearest whole dollar amounts.

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Definitions:

Proposal

A formal offer or plan submitted for consideration, approval, or discussion to achieve a specific goal or project.

Recipient's Challenges

Difficulties or obstacles faced by the receiver of a message or service, affecting their ability to fully understand or utilize it.

Attractively

In a manner that draws interest or attention in a pleasing way.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.