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 $$4\mathrm{.}7$ million $($fair value and present value of the lease payments$)$ machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Barton$$s implicit interest rate was $8\%.$

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)$

Required:

$1.$ Prepare the journal entry for American Food Services at the beginning of the lease

right of use $$4\mathrm{.}7$ mil

lease payable $$4\mathrm{.}7$ mil

$2.$ Prepare an amortization schedule for the four$-$year term of the lease.

lease payment, effective interest, decrease in balance, outstanding balance

$3.$ & $4.$ Prepare the appropriate entries related to the lease on December $31,2024$ and $2026$

$12/31/24$

interest expense $

lease payable $

cash $

$12/31/24$

amortixation expense

right of use asset

$12/31/2026$

interest expense

lease payable

cash

$12/31/26$

amortization expense

right of use asset