American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. The lease agreement for the $4.6 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 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.) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the lease. 3. & 4. Prepare the appropriate entries related to the lease on December 31, 2021 and 2023.

Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. (Enter your answers in whole dollars and not in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole dollars and not in millions. Round your answers to the nearest whole dollar. Enter all amounts as positive values.)

Lease Amortization Schedule
Year	Lease Payments	Effective Interest	Decrease in Balance	Outstanding Balance
				4,600,000
2021	1,419,885	414,000	1,005,885	3,594,115
2022	1,419,885	323,470	1,096,414	2,497,701
2023	1,419,885	224,793	1,195,091	1,302,610
2024	1,419,885	117,275	1,302,610	0
Total	5,679,540	1,079,538	4,600,000

Prepare the appropriate entries related to the lease on December 31, 2021 and 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar.)

• Record the lease payment and interest expense for American Food Services.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021

• Record the amortization of right-of-use asset for American Food Services.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021

• Record the lease payment and interest expense for American Food Services.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2023

• Record the amortization of right-of-use asset for American Food Services.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2023