Exercise $14-20($Static$)$ Installment note; amortization schedule $[$L$014-3]$

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 $$4$ 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:

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 installment payment on December $31,2026.$

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)$

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.