Exercise $14-20($Algo$)$ Installment note; amortization schedule $[$LO$14-3]$

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 $$5\mathrm{.}9$ 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 $11\%.$

Required:

Prepare the journal entry for American Food Services' purchase of the machine on January $1,2024.$

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

Prepare the journal entry for the first installment payment on December $31,2024.$

Prepare the journal entry for the third installiment payment on December $31,2026.$

Nore: Use rables, Excel, or a financial calculator. $($EV of $$1.$ PV of $$1.$ EVA of $$1,$ PVA of $$1.$ FVAD of $$1$ and PVAD of $$1)$

Refierences

Complete this question by entering your answers in the tabs below.

Req $2$

Req $13$ and $4$

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.

$\backslash$table$[[$December $31,$Cash Payment,Effective Interest,$\backslash$table$[[$Decrease in$],[$Balance$]],\backslash$table$[[$Outstanding$],[$Balance$]]],[,,,5,900,000,],[2024,,,,],[2025,,,,],[2026,,,,],[2027,,,,],[,,,,]]$

Mc

Graw

HHI

Prey.

$1$ of $5$

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