On january 1, 2018, nath-langstrom services, inc., a computer software training firm, leased several computers under a two-year operating lease agreement from computerworld leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. 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 computerworld at a cost of $90,000 and were expected to have a useful life of five years with no residual value. both firms record amortization and depreciation semi-annually.
required:
prepare the appropriate entries for both (a) the lessee and (b) the lessor from the begining of the lease through the end of 2018.