American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation.

Barton and Barton completed construction of the machine on January $1,2024.$

In payment for the $$4$ 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 $10\%.$

Required:

Prepare the journal entry for American Food Services' purchase of the machine on January $1,2024.$

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

Prepare the journal entry for the first installment payment on December $31,2024.$

Prepare the journal entry for the third installment payment on December $31,2026.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Complete this question by entering your answers in the tabs below.

Req $2$

Req $13$ and $4$

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

Note: Round intermediate calculations and final answers to the nearest whole dollar.

$\backslash$table$[[$December $31,$Cash Payment,Effective Interest,$\backslash$table$[[$Decrease in$],[$Balance$]],\backslash$table$[[$Outstanding$],[$Balance$]]],[,,,,],[2024,,,,],[2025,,,,],[2026,,,,],[,,,,],[,,,,]]$

Journal entry worksheet

Record the purchase of the machine on January $1,2024.$

Note: Enter debits before crecits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2024,,,],[,,,],[,,,],[,,,],[,,,]]$

Journal entry worksheet

$3$

Record the first installment payment on December $31,2024.$

Note: Enter debits before credits

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$December $31,],[2024]],,,],[,,,],[,,,],[,,,],[,,,]]$

Journal entry worksheet

$1$

$2$

$3$

Record the third installment payment on December $31,2026.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$December $31,],[2026]],,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$