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 $350,000, three-year note that specified 6% 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 12% 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 $150,000 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 Reg 3 Complete the below table to prepare the company's journal entry. (R Table values are based on: n = i = 12.0% Cash Flow Amount Present Value Interest $ 21,000 Principal $ 350,000 Price of equipment