American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. The lease agreement for the $6.0 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%. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024. 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, 2024 and 2026. Complete this question by entering your answers in the tabs below. Req 3 and 4 Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024. Note: 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. General Journal Req 1 No 1 Answer is complete but not entirely correct. Req 2 Date January 01, 2024 Right-of-use asset Lease payable (Reg Req 2 > Debit 6,000,000 Credit 6,000,000 American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. The lease agreement for the $6.0 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%. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024. 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, 2024 and 2026. Complete this question by entering your answers in the tabs below. Req 1 Req 3 and 4 an amortization schedule for the term of Note: Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Year 2024 2025 2026 2027 Total Req 2 Lease Payments 1,892,822 1,892,822 1,892,822 1,892,822 7,571,288 Answer is complete but not entirely correct. Lease Amortization Schedule Decrease in Balance Effective Interest 600,000 470,718 470,688 29,912 1,571,318 1,292,822 1,422,104 1,422,134 1,862,910 5,999,970 < Req 1 Outstanding Balance 6,000,000 4,707,178 3,285,044 1,862,910 0 Req 3 and 4 > our years wir value. Darvi au DORUITS impact in a way to 0. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024. 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, 2024 and 2026, Complete this question by entering your answers in the tabs below. Req 2 Prepare the appropriate entries related to the lease on December 31, 2024 and 2026. Note: 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. Date General Journal Credit December 31, 202 Interest expense Lease payable Cash No 1 2 3 Req 1 4 Req 3 and 4 Answer is complete but not entirely correct. December 31, 202 Amortization expense Right-of-use asset December 31, 202 Interest expense Lease payable Cash December 31, 202 Amortization expense Right-of-use asset < Req 2 >> O 000 33 Debit 600,000 1,292,822 1,500,000 328,510x 1,564,312 1,500,000 Req3 and 4S 1,892,822 1,500,000 1,892,822 1,500,000