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I already completed requirement 1. Please help with requirements 2,3, and 4 American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation.
I already completed requirement 1. Please help with requirements 2,3, and 4
American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. The lease agreement for the $5.3 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 five years with no residual value. Barton and Barton's implicit interest rate was 10%. (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.) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the lease. 3.& 4. Prepare the appropriate entries related to the lease on December 31, 2021 and 2023. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 and 4 Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in Round your answers to the nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Lease Effective Decrease in Outstanding Year Payments Interest Balance Balance 5,300,000 2021 2022 2023 2024 Total 0 0 0 General Journal Debit Credit Date December 31 2021 Interest expense Lease payable Cash December 31, 2021 Amortization expenso Right-of-use asset December 31. 2023 Interest expense Lease payable Cash December 31 2023 Amortization expense Right-of-use assetStep by Step Solution
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