Exercise 15-2 Finance lease; calculate lease payments [LO15-2] American Food Services, Inc., leased a packaging machine from Barton and Barton Co construction of the machine on January 1. 2018. The rporation. Barton and Berton completed e lease agreement for the $5.2 million (fair value and present value of the lease peyments) machine specified four equal payments ot the end of each yeor The useful life of the machine was expected to be six years with no residual vee taandBorton s- terestr tewas 12% (of$1 P ofs. E Aof SpVA of $1, FVAD of S1 and PVAD of S1 (Use appropriate factorls) from the tables provided.) Required: 1, Prepare the journal entry for American Food Services at the begnning of the lease on January 1.2018 2. Prepare an amortization schedule for the four-year term of the lease 3. & 4. Prepere the eppropriste entries related to the lease on December 31, 2018 and 2020 Complete this question by entering your answers in the tabs below. Req I Req 2 Rea 3 and 4 Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018. (If no entry is required and not in millions.) transaction, select No journal entry required in the first account field. Enter your answers in whole dollars Journal January 01 2018 5,200 000 0 Equipment 5,203,000 Lease receivable D and whet was marked comect and incorrect fromm your previous attempt Exercise 15-2 Finance lease; colculate lease payments (LO15-2] leased a packaging machine from Barton and Barton Corporation. Borton and Barton American Food Services, Inc. construction of the machine on January 1,2018. The lease agreement for the $5.2 million (feir value end present value of the lease payments) ma ted no residual value. Barton and Bartons implicit interest rate was 12% evats mesti DAL PAas PVAD of Sh (Use appropriate factoris) from the tables Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018 1and provided.) Prepare an amonization schedule for the fouryear term of the lease 3. & 4. Prepare the eppropri ate 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 Reg 3 and 4 Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole doilars and not in millions Round your answers to nearest whole dollar. Enter all amounts as positive values.) Lease Effective Outstanding 2010 20190 6240000 1,068.019 1,218,581 1,364 811 5,200000 4 111,981 0 2893,400 C 1,088 019 2019 171201493 438 2020 1,712019 1,712,019 47,208 183,430 Req 1 Req 3 and 4 lon and Barton Corporation. Berton and Barton completed construction ofhemac ayments at the end of each year. The useful life of the machine was expected to be six years with no residual value. Berton and Barton's inglot rterest rate was 12% PVAD of S (use eppropriate factoris) from the tables provided.) on January 1, 2018. The lease agreement for the S52 milion fair value and present value of the lease 1. Propare the journal 2 entry for American Food Services at the beginning of the lease on January 1, 2018 Prepare an amortization schedule for the four-year torm of the lease. 3. & 4. Prepare the appropriste entries related to the lease on Docember 31, 2018 and 2020 Complete this question by entering your answers in the tabs helow. Prepare the appropriate entries related to the lease on December 31, 2018 and 2020. (Enter your and not in millions. Round your intermnedate and final answers to near transaction/event, select "No journal entry required in the first account fiald. in whole dollars est whole dolar no entry is rea ired for 3 Goneral Joumal 1 December Rght-of use asoet 1008 0190 624020 1,712 019 2 Dacember 3 805,567 December31, Lease recewable 1,364 811 347 208 ntarest revenue 0 1,712019 2120 866 057 Accumulated depreciation 66,667 0