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 $800,000, 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 son with similar transactions that 10% was a reasonable rate of interest. (FV of $1. PV of $1, EVA 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. 570 ELESL, payable dilludily on December SI UI LOCII yedi. Tre Cast diket price or use idul by comparison with similar transactions that 10% was a reasonable rate of interest. (FV of $1. F FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) points 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 oft 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 eBook Hint Complete this question by entering your answers in the tabs below. Print References Req 1A Req 1B Reg 2 Req3 Complete the table below to determine the price of the equipment. (Round final answers to the nea Table values are based on: Cash Flow Amount Interest Principal Price of equipment Reg 1B > Req 1A Req 1B Req 2 Req3 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.) View transaction list Journal entry worksheet Record the Amber Mining and Milling's purchase of the lathe. Note: Enter debits before credits General Journal Debit Credit Date January 01, 2021 CHECK WUK 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 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 / / / / / 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 required for a transaction/event, select "No journal entry required in the first account field. Round intermediate calculations and answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the interest in year 1 Note: Enter debits before credits. Event General Journal Debit Credit / / / / / / / / / View general journal Clear entry Record entry
