American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. In payment for the $5.0 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 8%. (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. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2018. 4. Prepare the journal entry for the third installment payment on December 31, 2020. Req 2 Req 1 3 and 4 Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.) Dec.31 Cash Payment Effective Interest Decrease in Balance Outstanding Balance 2018 2019 1,509,616 1,509,616 X 1,509,616 1,509,616 X 6,038,464 2020 2021 400,000 311,231 215,359 X 111,846 1,038,436 1,109,616 1,198,358 X 1,294,256 X 1,397,770 5,000,000 3,890,384 2,692,026 1,397,770 No Date General Journal Credit Debit 5,000,000 January 01, 2018 Notes payable 5,000,000 2 December 31, 201 Notes payable 1,109,616 400,000 Interest expense 1,509,616 3 December 31, 202 Notes payable Interest expense 1,294,256 215,359 1,509,616