Holly Springs, Incorporated contracted with Coldwater Corporation to have constructed a custom$-$made lathe. The machine

was completed and ready for use on January $1,2024.$ Holly Springs paid for the lathe by issuing a $$220,000$ note due in thre

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.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required: $,$

Prepare the journal entry on January $1,2024,$ for Holly Springs' purchase of the lathe.

Prepare an amortization schedule for the three$-$year term of the note.

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.

Reiruired $3$

Prepare the journal entries to recoruuired $3.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your interm

and final answers to the nearest whole dollar.