American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $4.5 million machine, American Food Services issued a four-ye installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. (FV o PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2021. 4. Prepare the journal entry for the third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. Req 2 > Answer is not complete. Req 1 3 and 4
American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $4.5 million machine, American Food Services issued a four-ye installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. (FV o PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2021. 4. Prepare the journal entry for the third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. Req 2 > Answer is not complete. Req 1 3 and 4
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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Question
![Req 2
Req 1 3 and 4
Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.)
Effective
Interest
Decrease in
Balance
Outstanding
Balance
Dec.31 Cash Payment
2021
2022
2023
2024
1,419,603
1,419,603
1,419,603
1,419,603
5,678,412
450,000
353,040
246,383
1,419,603
2,469,026
969,603 X
0
969,603
4,500,000
3,530,397
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fe591d1-b20e-4716-b178-bb74293a145f%2F0e348575-8bc4-42b7-89dc-bcdf632e32d3%2Ffvpytb_processed.png&w=3840&q=75)
Transcribed Image Text:Req 2
Req 1 3 and 4
Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.)
Effective
Interest
Decrease in
Balance
Outstanding
Balance
Dec.31 Cash Payment
2021
2022
2023
2024
1,419,603
1,419,603
1,419,603
1,419,603
5,678,412
450,000
353,040
246,383
1,419,603
2,469,026
969,603 X
0
969,603
4,500,000
3,530,397
0
![American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed
construction of the machine on January 1, 2021. In payment for the $4.5 million machine, American Food Services issued a four-year
installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. (FV of $1
PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2021.
2. Prepare an amortization schedule for the four-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2021.
4. Prepare the journal entry for the third installment payment on December 31, 2023.
Complete this question by entering your answers in the tabs below.
Req 2
X Answer is not complete.
Req 1 3 and 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fe591d1-b20e-4716-b178-bb74293a145f%2F0e348575-8bc4-42b7-89dc-bcdf632e32d3%2Ft316c5_processed.png&w=3840&q=75)
Transcribed Image Text:American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed
construction of the machine on January 1, 2021. In payment for the $4.5 million machine, American Food Services issued a four-year
installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. (FV of $1
PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2021.
2. Prepare an amortization schedule for the four-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2021.
4. Prepare the journal entry for the third installment payment on December 31, 2023.
Complete this question by entering your answers in the tabs below.
Req 2
X Answer is not complete.
Req 1 3 and 4
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