es 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 $5.4 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 11%. ● • ● 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.
es 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 $5.4 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 11%. ● • ● 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1 of 315 Received the balance due trom Penkwa.2226Paid Kenliwa the balance due. Sold inventory costing $15,000 to Makoons Inc. for S 30,000 on account, terms n/45, FOB shipping point 27Freight charges of $750 were paid by the appropriate party on the August 26 sale of inventory.30 Makoons returned goods sold for $1,200 that cost $ 650. The merchandise was restored to inventory. Your AnswerCorrect Answer (Used)Record the August transactions on Niska's books. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record joumal entries in the order
Transcribed Image Text:es
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 $5.4 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 11%.
●
•
●
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.
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