Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3] 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 $4.6 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 12%. (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 Req 1 3 and 4 Prepare the journal entries for American Food Services' purchase of the machine on January 1, 2021, the first installment payment on December 31, 2021 and the third installment payment on December 31, 2023. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the purchase of the machine on January 1, 2021. 2 Record the first installment payment on December 31, 2021. 3 Record the third installment payment on December 31, 2023. Note: journal entry has been entered = Record entry Clear entry < Req 2 IXI it Credit View general journal Req 1 3 and 4 >
Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3] 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 $4.6 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 12%. (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 Req 1 3 and 4 Prepare the journal entries for American Food Services' purchase of the machine on January 1, 2021, the first installment payment on December 31, 2021 and the third installment payment on December 31, 2023. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the purchase of the machine on January 1, 2021. 2 Record the first installment payment on December 31, 2021. 3 Record the third installment payment on December 31, 2023. Note: journal entry has been entered = Record entry Clear entry < Req 2 IXI it Credit View general journal Req 1 3 and 4 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi, please help with attached questions, thanks so much.
![Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3]
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 $4.6 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 12%. (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 Req 1 3 and 4
Prepare the journal entries for American Food Services' purchase of the machine on January 1, 2021, the first installment payment on
December 31, 2021 and the third installment payment on December 31, 2023. (Enter your answers in whole dollars. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1
Record the purchase of the machine on January 1, 2021.
2 Record the first installment payment on December 31,
2021.
3 Record the third installment payment on December 31,
2023.
Note: journal entry has been entered
=
Record entry
Clear entry
< Req 2
IXI
it
Credit
View general journal
Req 1 3 and 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F56a540a7-a927-4c52-898b-2be521ccd975%2Fupm8uvs_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3]
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 $4.6 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 12%. (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 Req 1 3 and 4
Prepare the journal entries for American Food Services' purchase of the machine on January 1, 2021, the first installment payment on
December 31, 2021 and the third installment payment on December 31, 2023. (Enter your answers in whole dollars. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1
Record the purchase of the machine on January 1, 2021.
2 Record the first installment payment on December 31,
2021.
3 Record the third installment payment on December 31,
2023.
Note: journal entry has been entered
=
Record entry
Clear entry
< Req 2
IXI
it
Credit
View general journal
Req 1 3 and 4 >
![Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3]
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 $4.6 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 12%. (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
Req 1 3 and 4
Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.)
Decrease in
Balance
Outstanding
Balance
Dec.31 Cash Payment
2021
2022
2023
2024
Effective Interest
< Req 2
Req 1 3 and 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F56a540a7-a927-4c52-898b-2be521ccd975%2F7ej3387_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-20 (Algo) Installment note; amortization schedule [LO14-3]
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 $4.6 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 12%. (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
Req 1 3 and 4
Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.)
Decrease in
Balance
Outstanding
Balance
Dec.31 Cash Payment
2021
2022
2023
2024
Effective Interest
< Req 2
Req 1 3 and 4 >
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