Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $550,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (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-a. Complete the table below to determine the price of the equipment. 1-b. Prepare the journal entry on January 1, 2021, for Amber Mining and Milling's purchase of the lathe. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Complete the table below to determine the price of the equipment. (Round final answers to the nearest whole dollar.) Table values are based on: n = 3 = 9.0% Present Cash Flow Amount Value Interest $ 27,500 $ 55,689 X Principal $ 550,000 424,710 Price of equipment 480,399 Req 1A Req 1B > Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Prepare the journal entry on January 1, 2021, for Amber Mining and Milling's purchase of the lathe. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No Date General Journal 1 January 01, 2021 Equipment Depreciation expense Bonds payable < Req 1A Req 2 > Debit Credit 480,399x 69,601 X 550,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Prepare an amortization schedule for the three-year term of the note. (Round intermediate calculations and final answers to the nearest whole dollar.) Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 $ 22,000 $ 43,236 $ 21,236 X 480,399 x 2 22,000 45,147 X 23,147 503,546 3 22,000 68,454 46,454 550,000 Total $ 66,000 $ 156,837 $ 90,837 < Req 1B Req 3 > Req 1A Req 1B Req 2 Req 3 Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No Event General Journal 1 1 Interest expense Cash Discount on notes payable Debit 43,236 X Credit 22,000 21,236 X 2 2 Interest expense 45,147 x Cash 22,000 Discount on notes payable 23,147 X 3 3 Interest expense Cash Discount on notes payable 47,218 X 22,000 25,218 X 4 4 Notes payable Cash < Req 2 Req 3 > 550,000 550,000