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 $500,000, 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 11% 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 below table to prepare the company's journal entry. 1-b. Prepare the journal entry on January 1, 2021, for Truax Corporations sale of the lathe. Assume Truax spent $300,000 to construct 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 for Truax.

Req 1A Req 1B Req 2 Req3 Prepare the journal entry on January 1, 2021, for Truax Corporation's sale of the lathe. Assume Truax spent $300,000 to construct 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 General Journal Credit Date January 01, 2021 Notes receivable Sales revenue Debit 426,688 426,688 300,000 January 01, 2021 Cost of goods sold Inventory 300,000 Req 1A Req 1B Reg 2 Req3 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 $ $ 2 3 Total 25,000 25,000 25,000 75,000 46,936 49,349 500,651 596,936 21,936 24,349 475,651 521,936 24,349 500,000 $ $ $