Albus Dumbledore, Inc. contracted to have custom-made machinery constructed. The machinery was completed and ready for use on January 1, 2021. Albus Dumbledore paid for the machinery by Issuing a $260,000 note due in three years on January 1, 2024. Interest, specified at 3%, was payable annually on December 31 of each year. The cash market price of the machinery was unknown. It was determined by comparison with similar transactions for which 7% was a reasonable rate of interest. Albus Dumbledore uses the effective interest method of amortization. (FV of $1. PV of $1. FVA of $1. PVA of S1. FVAD of $1 and PVAD of $1) (You can use Excel, your financial calculator or the provided PV Tables.) 1. Prepare the journal entry on January 1, 2021, for Albus Dumbledore's purchase of the machinery 2. Prepare an amortization schedule for the three-year term of the note. Complete this question by entering your answers in the tabs below. Amortization Journal Entry Schedule Prepare an amortization schedule for the three-year term of the note. (Round your intermediate and final answers to the Note that this amortization schedule does NOT include the January 1, 2024 principle payment. Year Cach Effective Increase in Outstanding Payments Interest Balance Balance 2021 2022 2023