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 $4.4 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 11%. 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. 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, 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. Req 1 Req 2 Req 3 and 4 Prepare an amortization schedule for the four-year term of the lease. Note: Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Lease Amortization Schedule Year Lease Payments Effective Interest Decrease in Balance Outstanding Balance 4,400,000 2024 1,526,048 484,000 616,000 3,784,000 2025 1,526,048 416,240 683,760 2,674,192 2026 1,526,048 341,026 758,974 1,915,218 2027 1,526,048 (389,170) 1,915,218 0 Total 6,104,192 852,096 3,973,952 Req 1 Req 2 Req 3 and 4 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. View transaction list View journal entry worksheet No 1 Date December 31, 2024 General Journal Interest expense Lease payable Cash 2 December 31, 2024 Interest expense Interest payable 3 December 31, 2026 Interest expense Lease payable Cash December 31, 4 Interest expense 2026 Interest payable Debit Credit 484,000 1,100,000 1,584,000 484,000 484,000 291,689 1,100,000 1,391,689 291,689 291,689