American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed constructlon of the machine on January 1, 2018. The lease agreement for the $5.8 millon (fair value and present value of the lease payments) machlne 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 8%. (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use approprlate factor(s) from the tables provided.) Required: 1. Prepare the Journal entry for Amerlcan Food Services at the beginning of the lease on January 1, 2018. 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, 2018 and 2020. Complete this question by entering your answers in the tabs below. Req 3 and 4 Req 1 Req 2 Prepare the journal entry for American Food Services at the beginning of the lease on particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.) January 1, 2018. (If no entry is required for a Req 1 Req 2 Req 3 and 4 Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2 particular transaction, select "No journal entry required" in the first account field. Enter your answe millions.) View transaction list Journal entry worksheet 1 Record beginning of the lease for American Food Services Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 merlcan Food Services, Inc., leased a packaglng machlne from Barton and Barton Corporatlon. Barton and Barto onstructlon of the machine on January 1, 2018. The lease agreement for the $5.8 million (falr value and present v ayments) machlne specified four equal payments at the end of each year. The useful life of the machlne was exp ears with no residual value. Barton and Barton's Implicit Interest rate was 8%. (FV of $1, PV of $1, FVA of $1. PVA c VAD of $1 (Use approprlate factor(s) from the tables provided.) Requlred: . Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018. 2. Prepare an amortization schedule for the four-year term of the lease. . & 4. Prepare the approprlate entrles related to the lease on December 31, 2018 and 2020. Complete this question by entering your answers in the tabs below. Req 2 Req 1 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 n Round your answers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Decrease in Outstanding Balance Lease Effective Year Payments Interest Balance 2018 2019 2020 2021 Total Req 1 Req 3 and 4 > Requlred: 1. Prepare the Journal entry for American Food Services at the beginning of the lease on January 1, 20 2 Prepare an amortizatlon schedule for the four-year term of the lease. 3. & 4. Prepare the appropriate entrles related to the lease on December 31, 2018 and 2020. Complete this question by entering your answers in the tabs below. Req 3and 4 Req 1 Req 2 Prepare the appropriate entries related to the lease on December 31, 2018 and 2020. (Enter your answen millions. Round your intermediate and final answers to nearest whole dollar. If no entry is required for a t journal entry required" in the first account field.) Vlew transaction llat Journal entry worksheet 1 2 3 4 Record the lease payment and interest expense for American Food Services Note: Enter debits before credits Date General Journal Debit Credit December 31, 2018
