ALL PARTS PLEASE I DO NOT UNDERSTAND

Company A contracted with Company B to have constructed custom-made machinery. The machinery was completed and ready for use on January 1, 2021. Company A paid for the machinery by issuing a $380,000 note due in three years. 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. Company A uses the effective interest method of amortization. (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 on January 1, 2021, for Company A's purchase of the machinery. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity