Braxton Technologies, Incorporated, constructed a conveyor for A$\backslash$&G Warehousers that was completed and ready for use on January $1,2024.$

$-$ A$\backslash$&G paid for the conveyor by issuing a $\backslash (\backslash$$ $125,000\backslash ),$ four$-$year note that specified $\backslash (5\backslash \%\backslash )$ interest to be paid on December $31$ of each year, and the note is to be repaid at the end of four years.

$-$ The conveyor was custom$-$built for A$\backslash$&G$,$ so its cash price was unknown.

$-$ By comparison with similar transactions it was determined that a reasonable interest rate was $\backslash (12\backslash \%\backslash ).$

Required:

$1.$ Prepare the journal entry for A$\backslash$&G$\text{'}$s purchase of the conveyor on January $1,2024.$

$2.$ Prepare an amortization schedule for the four$-$year term of the note.

$3.$ Prepare the journal entry for A$\backslash$&G$\text{'}$s third interest payment on December $31,2026.$

$4.$ If A$\backslash$&G$\text{'}$s note had been an installment note to be paid in four equal payments at the end of each year beginning December $31,2024,$ what would be the amount of each installment?

$5.$ By considering the installment payment of requirement $4,$ prepare an amortization schedule for the four$-$year term of the installment note.

$6.$ Prepare the journal entry for A$\backslash$&G$\text{'}$s third installment payment on December $31,2026.$

Note: Use tables, Excel, or a financial calculator. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and PVAD of $\backslash$$$1)$ Prepare the journal entry for A$\backslash$&G$\text{'}$s purchase of the conveyor on January $1,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.

Journal entry worksheet

$1$

Record A$\backslash$&G$\text{'}$s purchase of the conveyor.

Note: Enter debits before credits. Required $1$

Required $2$

Required $3$

Required $6$

Prepare an amortization schedule for the four$-$year term of the note.

Note: Round intermediate calculations and final answers to the nearest whole dollar.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Years & Cash Payment & $\backslash$begin$\{$tabular$\}\{$c$\}$

Effective $\backslash \backslash$

Interest

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Change in $\backslash \backslash$

Balance

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Outstanding $\backslash \backslash$

Balance

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{\}$ & & & $\backslash \backslash$

$\backslash$hline $2024$ & & & & $\backslash \backslash$

$\backslash$hline $2025$ & & & & $\backslash \backslash$

$\backslash$hline $2026$ & & & & $\backslash \backslash$

$\backslash$hline $2027$ & & & & $\backslash \backslash$

$\backslash$hline Total & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Prepare the journal entry for A$\backslash$&G$\text{'}$s third interest payment on December $31,2026.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.

Journal entry worksheet

Record A$\backslash$&G$\text{'}$s third interest payment.

Note: Enter debits before credits.

If A$\backslash$&G$\text{'}$s note had been an installment note to be paid in four equal payments at the end of each year beginning December $31,2024,$ what would be the amount of each installment?

Note: Round intermediate calculations and final answer to the nearest whole dollar.