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5. American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1,
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American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the $4.1 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be five years with no residual value. Barton and Barton's implicit interest rate was 10% (EyofSL PyofSL EViot L PVAofS1. EVADorst and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole dollars and not in millions. Round your answers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Decrease in Balance Lease Effective Interest Outstanding Balance Year Payments 2018 2019 2020 2021 Total Req 2Req 3 and 4 Req 1 Prepare the appropriate entries related to the lease on December 31, 2018 and 2020. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 201 Interest expense Lease payable CashStep by Step Solution
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