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 $800,000, three-year note that specified 5% interest, payable annually on December 310 each yeat. - 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. 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 financial calculator. (EV of \$1, PV of \$1. EVA of \$1, PVA of \$1. PVAD of \$1 and PVAD of \$1) Complete this question by entering your answers in the tabs below. Complete the table below to determine the price of the equipment. Note: Round final answers to the nearest whole dollar. Round your percentage answer in one decimal place. Journal entry worksheet Record the Amber Mining and Milling's purchase of the lathe. Note: Enter debits before credits. 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 purchas 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) payr Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, 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 intermediate calculations and final answers to the nearest whole dollar. Note: If no entry is required for a transaction/event, select "No journal entry required" in the fi calculations and final answers to the nearest whole dollar. Journal entry worksheet 4 Note: If no entry is required for a transaction/event, select "No journal entry required" in th calculations and final answers to the nearest whole dollar. Journal entry worksheet Record the interest in year 2. Note: Enter debits before credits. Note: If no entry is required for a transaction/event, select "No journal entry required" in calculations and final answers to the nearest whole dollar. Journal entry worksheet Record the interest in year 3. Note: Enter debits before credits. Note: If no entry is required for a transaction/event, select "No journal entry required" in th calculations and final answers to the nearest whole dollar. Journal entry worksheet Record the payment of the note at maturity. Note: Enter debits before credits
