Holly Springs. Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $400.,000 note due in three years. Interest, specified at 4%, was payable annually on December 31 of each year. The cash market price of the athe was unknown. It was deter ined by comparison with similar transactions for which 8% wa areasonable rate ofinterest Holly Springs uses the effective interest method of amortization. (FV of $1, PV of S1. FVA of S1. 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) was completed and 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 et moturity 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 Record for the Holly Springs purchase on January 1, 2018