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 $4.8 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 six years with no residual value. Barton and Barton's implicit interest rate was 9%. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD 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.explain 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.

ezto.mheducation.com MyCourses@CCSU - Blackboard Learn Connect Homework Help - Q&A from Online Tutors -.. American Food Services, Inc. Leased A Pac. American Food Services, Inc. Leased A Pac... + CH 15 Homework i Saved Help Save & Exit Submit 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 $4.8 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 six years with no residual value. Barton and Barton's implicit interest rate was 9%. (FV of $1, PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.42 points Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. Skipped 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. eBook Reg 1 Req 2 Req 3 and 4 Hint Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole dollars and not in millions. Round your answers to the nearest whole dollar. Enter all amounts as positive values.) Print Lease Amortization Schedule Year Lease Effective Decrease in Outstanding Payments Interest Balance Balance References 4,800,000 2021 2022 2023 2024 Total 0 0 0 Mc Graw ducation