American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $4.6 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 12%. (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, 2021.

Prepare the journal entries for American Food Services purchase of the machine on January 1, 2021, the first installment payment on December 31, 2021 and the third installment payment on December 31, 2023. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Record the purchase of the machine on January 1, 2021.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021

2. Prepare an amortization schedule for the four-year term of the installment note.

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
2021
2022
2023
2024

3. Prepare the journal entry for the first installment payment on December 31, 2021.

Record the first installment payment on December 31, 2021.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021

4. Prepare the journal entry for the third installment payment on December 31, 2023.

Record the third installment payment on December 31, 2023.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021