Silly Machine, Inc contracted with Funny Builder Corporation to have constructed a custom made lathe The machine was completed and ready for use on January 1, 2021 Silly Machine paid for the lathe by issuing a $370,000 note due in three years Interest, specified at 4 , was payable annually on December 31 of each year The cash market price of the lathe was unknown It was determined by comparison with similar transactions that 8 was a reasonable rate of interest, and therefore the note was made at an unrealistic interest rate, Silly Machine uses the effective interest method of amortization (EV 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 on January 1, 2021, for Silly Machine's 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 Prepare the joumal entry on January 1, 2021, for Holly Springs' purchase of the lathe (If no entry is required for a transaction event, select No joumal entry required in the first account field ) Silly Machine, Inc contracted with Funny Builder Corporation to have constructed a custom made lathe The machine was completed and ready for use on January 1, 2021 Silly Machine paid for the lathe by issuing a $370,000 note due in three years Interest, specified at 4 , was payable annually on December 31 of each year The cash market price of the lathe was unknown It was determined by comparison with similar transactions that 8 was a reasonable rate of interest, and therefore the note was made at an unrealistic interest rate, Silly Machine uses the effective interest method of amortization (EV 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 on January 1, 2021, for Silly Machine's 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 Prepare the joumal entry on January 1, 2021, for Holly Springs' purchase of the lathe (If no entry is required for a transaction event, select No joumal entry required in the first account field )

Question

Silly Machine, Inc  contracted with Funny Builder Corporation to have constructed a custom made lathe  The machine was completed and ready for use on January 1, 2021  Silly Machine paid for the lathe by issuing a $370,000 note due in three years  Interest, specified at 4 , was payable annually on December 31 of each year  The cash market price of the lathe was unknown  It was determined by comparison with similar transactions that 8  was a reasonable rate of interest, and therefore the note was made at an unrealistic interest rate, Silly Machine uses the effective interest method of amortization  (EV 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 on January 1, 2021, for Silly Machine's 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  Prepare the joumal entry on January 1, 2021, for Holly Springs' purchase of the lathe  (If no entry is required for a transaction event, select  No joumal entry required  in the first account field ) Silly Machine, Inc  contracted with Funny Builder Corporation to have constructed a custom made lathe  The machine was completed and ready for use on January 1, 2021  Silly Machine paid for the lathe by issuing a $370,000 note due in three years  Interest, specified at 4 , was payable annually on December 31 of each year  The cash market price of the lathe was unknown  It was determined by comparison with similar transactions that 8  was a reasonable rate of interest, and therefore the note was made at an unrealistic interest rate, Silly Machine uses the effective interest method of amortization  (EV 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 on January 1, 2021, for Silly Machine's 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  Prepare the joumal entry on January 1, 2021, for Holly Springs' purchase of the lathe  (If no entry is required for a transaction event, select  No joumal entry required  in the first account field )

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Silly Machine, Inc. contracted with Funny Builder Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1,

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