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Question: On January 1, 2027, Cheema Services, Incorporated, 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 $ 10,500 each, payable semiannually on On January 1 , 2 0 2 7 , Cheema Services, Incorporated, 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 $ 1 0 , 5 0 0 each, payable semiannually on June 3 0 and December 3 1 each year. - The computers were acquired by ComputerWorld at a cost of $ 9 1 , 0 0 0 and were expected to have a useful life of five years with no residual value. - Both firms record amortization and depreciation semiannually. Note: Use tables, Excel, or a financial calculator. ( FV of $ 1 , PV of $ 1 , FVA of $ 1 , PVA of $ 1 , FVAD of $ 1 and PVAD of $ 1 )  Required: 1 . Prepare appropriate journal entries recorded by Cheema Services for the first year of the lease. - January 1 , 2 0 2 7 : Record the beginning of the lease for Cheema Services - June 3 0 , 2 0 2 7 : Record the lease payment made by Cheema Services - June 3 0 , 2 0 2 7 : Record amortization for Cheema Services - December 3 1 , 2 0 2 7 : Record the lease payment made by Cheema Services - December 3 1 , 2 0 2 7 : Record amortization for Cheema Services 2 . Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease. - January 1 , 2 0 2 7 : Record the beginning of the lease for ComputerWorld Leasing - June 3 0 , 2 0 2 7 : Record the lease payment received by ComputerWorld Leasing - June 3 0 , 2 0 2 7 : Record depreciation for ComputerWorld Leasing - December 3 1 , 2 0 2 7 : Record the lease payment received by ComputerWorld Leasing - December 3 1 , 2 0 2 7 : Record depreciation for ComputerWorld Leasing There are 2 steps to solve this one. Solution Step 1 Solution: (1) Prepare appropriate journal entries recorded by Cheema Services for the first year of t... View the full answer Step 2 Unlock Answer Unlock (1) Prepare appropriate journal entries recorded by Cheema Services for the first year of t...