Amber Mining and Milling, incorporated, contracted with Truax Corporation to have constructed a custom-made lathe. - The machine was completed and ready for use on January 1,2024. - Amber paid for the lathe by issuing a $600,000, threeyear note that specified 4% interest, payable annualy on December 31 of each year - The cash market peice of the lathe was unknown. - It was determined by comparison with similar transactions that 12% was a reasonable rate of interest. Required: 1.a. Complele the table below to determine the price of the equipment 1-b. Prepare the journal entry on January 1, 2024, for Amber Mining and Milung's purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journat entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Note: Use tables, Excel, or a finenciol calculator. (EVorS1, PV of S1. EVA of S1. PVA ofS1. EVAD of S1 and PVAD of S1) 0 Amswer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Corpitele the table below to determine the price of the equipenent: Wite: Round final answers to the nearnst whole doliars. Round your percentage answer to ene dedimal place. Amber Mining and Miling. Incorporated, contracted with Truax Corporation to have constructed a custom-made lathe. - The machine was completed and ready for use on January 1,2024. - Amber paid for the lathe by issuing a $600,000, three-year note that specified 4% 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. Required: 1-0. Complete the table below to determine the price of the equipment. 1-b. Prepare the journal entry on January 1, 2024. for Amber Mining and Milling's purchase of the lathe 2. Prepare an amortization schedule for the threeyear lerm 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. Note: Use tobles, Excel, or a finonciol colculator. (FV of S1. PV of \$1. EVA of S1, PVA of S1. FVAD of S1 and PVAD of S1) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare the journal entry on January 1, 2024, for Amber Mining and Malling's purchase of the lathe. Note: 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 dollars. Required: 1-a. Complete the table below to determine the price of the equipment. 1.b. Prepare the journal entry on January 1, 2024, 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. Note: Use tables, Excel, or a finencial colculotor. (FV of S1. PV of S1. EVA of S1. PVA of S1. FVAD of S1 and PVAD of S1) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule for the three-year term of the note. Note: Round intermedate calculations and final answers to the nearest whole dollars. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Note: 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 dollars
