Exercise 15-2 Finance lease; calculate lease payments [L015-2 American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. 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 five years with no residual value. Barton and Barton's implicit interest rate was 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.) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018. 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, 2018 and 2020. Complete this question by entering your answers in the tabs below Req 1 Req2 Req 3 and 4 Prepare the journal entry or American Food Services at the beginning of the lease on January ,2018 entry required" in the first account field. Enter your answers in whole dollars and not in millions.) f no entry for a particular transaction, select s requined o uma Journal entry worksheet Record beginning of the lease for American Food Services Note: Enter debits before credits Date General Journal Debit Credit January 01,2018 Req 1 Req 2 Req 3 and 4 Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole dollars and not in millions. Round your answers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Decrease in Balance Outstanding Balanee Year Lease Payments Effective Interest 2018 2019 2020 2021 Total Journal entry worksheet 2 3 4 Record the l ease payment and interest expense for American Food Services Note: Enter debits before credits Date General Journal Debit Credit December 31,2018 Journal entry worksheet 2 3 4 Record the amortization of right-of-use asset for American Food Services Note: Enter debits before credits Date General Journal Debit Credit December 31,2018 Journal entry worksheet 2 3 4 Record the lease payment and interest expense for American Food Services. Note: Enter debits before credits Date General Journal Debit Credit December 31,2020 Journal entry worksheet 2 3 4 Record the amortization of right-of-use asset for American Food Services. Note: Enter debits before credits. Date General Journal Debit Credit December 31,2020