"AFE 588 Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $500,000, three year note that specified 5% Interest, 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. (EY of $1. PV of $1. EVA L $1. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: 1-a. Complete the table below to determine the price of the equipment. 1-b. Prepare the journal entry on January 1, 2021, for Amber Mining and Milling'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. Reg LA Reg 18 Reg 2 Complete the table below to determine the price of the equipment (Round final answers to the nearest whole dollar) Table values are based on Present Value Cash Flow Amount Interest Principal Price of equipment arch See all photos + Add to 10 za View transaction list Journal entry worksheet J STARS Record the Amber Mining and Milling's purchase of the lathe. Storent Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Record entry Clear entry View general journal to search 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. Req 1A Reg 1B Req 2 Req3 Prepare an amortization schedule for the three-year term of the note. (Round Intermediate calculations and final answers to the nearest whole dollar) Cash Payment Effective Interest Increase in Balance Outstanding Balance 2 Total Reg 1B Reg 3 > answers to the nearest whole dollar.) View transaction list 5.88 points Journal entry worksheet 1 2 3 4 eBook Record the interest in year 1. References Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general Journal Chip answers to the nearest whole dollar.) View transaction list 5.88 Journal entry worksheet
