Question 1 - 614-18 - Connect Amor Mining And Mine Contact Sad mber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was ompleted and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $740,000, three-year note that specified 3 terest, payable annually on December 31 of each year. The cash market price of the late was unknown. It was determined by comparison with similar transactions that 20% was a reasonable rate of interest (EV of $1. PV of $1. EVASPVA of 51. EVAD of and PVAD of $0) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Complete the below table to prepare the company's journal entry 1-b. Prepare the journal entry on January 1, 2021, for Truax Corporation's sale of the fathe Assume Truax spent $540,000 to constr 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 for Truax Complete this question by entering your answers in the tabs below. Reg 2 Req3 Reg 1A Reg 18 Complete the below table to prepare the company's journal entry. (Round final answers to the nearest whole dollar) Table values are based on Present Value 20.0% Cash Flow Amount Interest Principal Price of equipment Re> Prev 1 of 1 Next MacBook Air Dil 14 O BO A & 9 02 8 7 $ 4 23 # 3 6 2 Y U Calculations and final answers to the nearest whole dollar.) the nest account field. Round in View transaction list Journal entry worksheet 1 2 > Record the entry for Truax Corporation's sale of the lathe. Note Enter dit before credits Date January 01, 2021 General Journal Debit Credit Record entry Clear entry View general Journal Prev 1 of 1 !! Next MacBook Air SO 1 3 . FO :8 % 2 3 $ 4 & 7 8 9 W E R T Y U 0 S D F G . J K C V B N M . in the tabs below. Reg 1A Reg 18 Reg 2 Req3 Prepare an amortization schedule for the three-year term of the note. (Round intermediate calculations and final answe the nearest whole dollar.) Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 2 3 Total Rag 3 > Prev 1 of 1 Next MacBook Air bu 2 3 4 % 5 0 > & 7 8 9 W E R T Y > U C S D F G . J K . C V B N . View transaction list Journal entry worksheet 1 2 3 Record the interest in year 1 Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal Prov 1 of 1 E! Next MacBook Air BO 3 . DAN TO Wb A 2 3 $ 4 96 5 6 7 00 9 O W E R T Y U O S D F G H J K C V B N M ge
