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 $$5\mathrm{.}3$ million $($fair value and present value of the lease payments$)$ machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Barton$$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,$ FVAD of $$1$ and PVAD of $$1)$

Required:

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

Lease Amortization Schedule

Year Lease Payments Effective Interest Decrease in Balance Outstanding Balance

$5,300,000$

$2024530,000$

$2025$

$2026$

$2027$

Total $0530,0000$

$3.$ & $4.$ Prepare the appropriate entries related to the lease on December $31,2024$ and $2026.$ Record the lease payment and interest expense for American Food Services.