American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. The lease agreement for the $5.2 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 four years with no residual value. Barton and Barton's implicit interest rate was 12%.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024.

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, 2024 and 2026.

ezto.mheducation.com C + Home | MyCPP Assignments: ACC 3120.0... M Question 1 - HWCh15 - Co... M https://ezt.prod.mheducati.. C Chat - Learn with Chegg |... Homework Help - Q&A fro.. HWCh15 i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question LIC ICUSE PUyIIICILLO) INMULTIITIC SPECIFICY IVUI CHUI PUyIIICILLO UL UIC CHU VI CULLI YOUI. ITIC USEIU IIIULITITIC VUS CAPELIEU LV ME four years with no residual value. Barton and Barton's implicit interest rate was 12%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 10 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2024. points 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, 2024 and 2026. x Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Prepare an amortization schedule for the four-year term of the lease. Note: Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Lease Amortization Schedule Year Lease Effective Decrease in Outstanding Payments Interest Balance Balance 5,200,000 2024 8, 182,276 X 2025 2026 |2027 Tota 3, 182,276 0 0 Reg 1 Reg 3 and 4 Mc Graw Hill> ezto.mheducation.com C + ME Home | MyCPP Assignments: ACC 3120.0... M Question 1 - HWCh15 - Co.. M https://ezt.prod.mheducati... C Chat - Learn with Chegg |... Homework Help - Q&A fro. HWCh15 i Saved Help Save & Exit Submit Check my work Req 1 Reg 2 Req 3 and 4 10 Prepare the appropriate entries related to the lease on December 31, 2024 and 2026. points Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. View transaction list eBook Journal entry worksheet Hint 2 3 4 > Print Record the amortization for American Food Services. References Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2024 Record entry Clear entry View general journal Mc Graw Hill> ezto.mheducation.com C + ME Home | MyCPP Assignments: ACC 3120.0... M Question 1 - HWCh15 - Co.. M https://ezt.prod.mheducati... C Chat - Learn with Chegg |... Homework Help - Q&A fro. HWCh15 i Saved Help Save & Exit Submit Check my work Req 1 Reg 2 Req 3 and 4 10 Prepare the appropriate entries related to the lease on December 31, 2024 and 2026. points Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. View transaction list eBook Journal entry worksheet Hint 2 3 4 > Print Record the lease payment and interest expense for American Food Services. References Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2026 Record entry Clear entry View general journal Mc Graw Hill> ezto.mheducation.com C + ME Home | MyCPP Assignments: ACC 3120.0... M Question 1 - HWCh15 - Co.. M https://ezt.prod.mheducati... C Chat - Learn with Chegg |... Homework Help - Q&A fro. HWCh15 i Saved Help Save & Exit Submit Check my work Req 1 Reg 2 Req 3 and 4 10 Prepare the appropriate entries related to the lease on December 31, 2024 and 2026. points Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. View transaction list eBook Journal entry worksheet Hint 2 3 4 Print Record the amortization for American Food Services. References Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2026 Record entry Clear entry View general journal Mc Graw Hill