American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. The lease agreement for the $0.8 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Bartons implicit interest rate was is 9%. (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.)

Respond to the question with the presumption that the guidance provided by the proposed Accounting Standards Update is being applied.

Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1.Record the lease.

2. Prepare an amortization schedule for the four-year term of the lease. (year 2016-2019) - lease payments - effective interest- decrease in balance-outstanding balance).

3. Prepare the appropriate journal entry(s) on December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1.Record cash payment. 2. Record amortization expense. .

4.Prepare the appropriate journal entry(s) on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1.Record cash payment. 2.Record amortization expense.