Check my work 23 . Exercise 14-20 Installment note; amortization schedule (LO14-3] 0.24 points American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. In payment for the $5.9 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 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) eBook Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2018. 4. Prepare the journal entry for the third installment payment on December 31, 2020. Hint Print Complete this question by entering your answers in the tabs below. References Req 2 Req 1 3 and 4 Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.) Dec.31 Cash Payment Effective Interest Decrease in Balance 2018 1,901,725 1,252,725 Outstanding Balance 5,900,000 4,647,275 3,256,750 1,713,267 649,000 511,200 358,242 2019 2020 1,901,725 1,901,725 1,901,725 7,606,900 1,390,525 1,543,483 1,713,267 5,900,000 2021 188.458 0 1,706,900 Req 2 Reg 1 3 and 4 Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018, the first installment payment on December 31, 2018 and the third installment payment on December 31, 2020. (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.) View transaction list Journal entry worksheet 1 2 3 Record the purchase of the machine on January 1, 2018. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Interest expense Notes payable Cash 649,000 1,252,726 1,901,725 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 2 Req 1 3 and 4 Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018, the first installment payment on December 31, 2018 and the third installment payment on December 31, 2020. (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.) View transaction list Journal entry worksheet 2 3 > Record the first installment payment on December 31, 2018. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Reg 2 Req 1 3 and 4 Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018, the first installment payment on December 31, 2018 and the third installment payment on December 31, 2020. (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.) View transaction list Journal entry worksheet 1 2 3 Record the third installment payment on December 31, 2020. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020 Record entry Clear entry View general journal
