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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.

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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 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 Barton's implicit interest rate was 10% (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of S1 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. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 and 4 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 Lease Effective Year Decrease in Outstanding Payments Interest Balance Balance 4,000,000 2021 1.261,881 400.000 861.881 3,138,119 2022 1,261,881 313.812 948.069 2.190.050 2023 1.261,881 219,005 1,042 876 1.147.174 2024 1,261,881 114,707 1.147.174 0 5,047 524 1,047.524 4.000.000 Total ( Req1 Req 3 and 4 > Journal entry worksheet 1 2 2 3 4 > Record the amortization of right-of-use asset for American Food Services. Note: Enter debits before credits. Debit Credit Date General Journal December 31, 2021 No journal entry required Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the amortization of right-of-use asset for American Food Services. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2023 Record entry Clear entry View general journal

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