American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. In payment for the $5.3 million machine. American Food Services Issued a four-year Installment note to be paid in four payments at the end of each year. The payments include Interest at the rate of 10%. · · Required: 1. Prepare the Journal entry for American Food Services purchase of the machine on January 1, 2024. 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, 2024. 4. Prepare the journal entry for the third Installment payment on December 31, 2026. 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) Complete this question by entering your answers in the tabs below. Req 2 Req 1 3 and 4 Prepare an amortization schedule for the four-year term of the installment note. Note: Round intermediate calculations and final answers to the nearest whole dollar. December 31 Cash Payment Effective Interest 2024 2025 2026 2027
American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. In payment for the $5.3 million machine. American Food Services Issued a four-year Installment note to be paid in four payments at the end of each year. The payments include Interest at the rate of 10%. · · Required: 1. Prepare the Journal entry for American Food Services purchase of the machine on January 1, 2024. 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, 2024. 4. Prepare the journal entry for the third Installment payment on December 31, 2026. 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) Complete this question by entering your answers in the tabs below. Req 2 Req 1 3 and 4 Prepare an amortization schedule for the four-year term of the installment note. Note: Round intermediate calculations and final answers to the nearest whole dollar. December 31 Cash Payment Effective Interest 2024 2025 2026 2027
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
un.9
Transcribed Image Text:American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation.
Barton and Barton completed construction of the machine on January 1, 2024.
In payment for the $5.3 million machine. American Food Services Issued a four-year Installment note to be paid in four
payments at the end of each year.
The payments include Interest at the rate of 10%.
·
·
Required:
1. Prepare the Journal entry for American Food Services purchase of the machine on January 1, 2024.
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, 2024.
4. Prepare the journal entry for the third Installment payment on December 31, 2026.
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)
Complete this question by entering your answers in the tabs below.
Req 2
Req 1 3 and 4
Prepare an amortization schedule for the four-year term of the installment note.
Note: Round intermediate calculations and final answers to the nearest whole dollar.
December 31 Cash Payment Effective Interest
2024
2025
2026
2027
<Req 2
Decrease in
Balance
Our randing
Balance
Req 13 and 4 >
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education