Exercise $14-20($Algo$)$ Installment note; amortization schedule $[$LO$14-3]$

$20$ points

References

American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation.

Barton and Barton completed construction of the machine on January $1,2024$

In payment for the $$60$ 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 $12\%$

Required:

Prepare the journal entry for American Food Services' purchase of the machine on January $1,2024.$

Prepare an amortization schedule for the four$-$year term of the installment note.

Prepare the journal entry for the first installment payment on December $31,2024.$

Prepare the journal entry for the third installment payment on December $31,2026$

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)$

Complete this question by entering your answers in the tabs below.

Req $13$ and $4$

Prepare the journal entries for American Food Services' purchase of the machine on January $1,2024,$ the first installment payment on December $31,2024$ and the third installment payment on December $31,2026.$

Note: Enter your answers in whole dollars. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

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$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,2024,$Equipment,$6,000,000,],[,,$Notes payable,,$6,000,000$