FALL, 2020 Name: 1) Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2021. The lease agreement for the $8 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. Phillips'implicit interest rate was 10%. Required: 1. Prepare the journal entry for Lancaster Services at the beginning of the lease on January 1, 2021. Debit Credit 2. Prepare an amortization schedule for the four-year term of the lease. (Round your answers to the nearest whole dollar amounts). Lease Amortization Schedule Date Lease Payments Effective Interest Decrease in Balance Outstanding Balance FALL, 2020 Name: 1) Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2021. The lease agreement for the $8 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. Phillips'implicit interest rate was 10%. Required: 1. Prepare the journal entry for Lancaster Services at the beginning of the lease on January 1, 2021. Debit Credit 2. Prepare an amortization schedule for the four-year term of the lease. (Round your answers to the nearest whole dollar amounts). Lease Amortization Schedule Date Lease Payments Effective Interest Decrease in Balance Outstanding Balance