Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $390,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization (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. Round your intermediate and final answers to the nearest whole dollar) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) Interest for each of the three years and (b) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry on January 1, 2018, for Holly Springs purchase of the lathe. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) View transaction list Journal entry worksheet 1 Record for the Holly Springs purchase on January 1, 2018 Not Enter debit before credits Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs pald for the lathe by issuing a $390,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest Holy Springs uses the effective interest method of amortization. (FV of St. PV of $1. EVA of $1. PVA OC St. EVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs' purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note, 3. Prepare the journal entries to record () interest for each of the three years and (b) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 1 Requires 2 Required 3 Prepare an amortization schedule for the three-year term of the note Catch Effective Thoreaus in Balance Ostanding Balance 1 2 3 Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $390,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest Holly Springs uses the effective interest method of amortization. (FV of $1. PV of $1, FVA of $1. PVA of $1. EVAD of $1 and PVAD of S1 (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar) Required: 1. Prepare the Journal entry on January 1, 2018, for Holly Springs' purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries to record () Interest for each of the three years and (b) payment of the note at maturity, if no entry's required for a transaction/even, select "No journal entry required in the first account held.) View transaction list Journal entry worksheet 1 2 3 4 > Record the interest for inst year Note Enter det en dit Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $390,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs' purchase of the lathe, 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Prepare the journal entries to record (6) Interest for each of the three years and (b) payment of the note at maturity. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field) View transaction list Journal entry worksheet Record the interest for third year Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $390,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization (FV of $1. Py of $1. FVA of $1. PVA of S1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the Journal entry on January 1, 2018, for Holly Springs purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. If no entry is required for a transaction/event, select "No journal entry required in the first account held.) View transaction list Journal entry worksheet