American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton...

  

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American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. . In payment for the $4.5 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2024. 4. Prepare the journal entry for the third installment payment on December 31, 2026. Prepare an amortization schedule for the four-year term of the installment note. Note: Round intermediate calculations and final answers to the nearest whole dollar. December 31 Cash Payment Effective Interest Decrease in Balance Outstanding Balance 2024 2025 2026 2027 American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. . In payment for the $4.5 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%. Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2024. 4. Prepare the journal entry for the third installment payment on December 31, 2026. Prepare an amortization schedule for the four-year term of the installment note. Note: Round intermediate calculations and final answers to the nearest whole dollar. December 31 Cash Payment Effective Interest Decrease in Balance Outstanding Balance 2024 2025 2026 2027