Exercise $15-2($Algo$)$ Finance lease; calculate lease payments $[$LO$15-2]$

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 $$4\mathrm{.}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 $9\%.$

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

Required:

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

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

& $4.$ Prepare the appropriate entries related to the lease on December $31,2024$ and $2026.$

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

Req $3$ and $4$

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

Note: Enter your answers in whole dollars and not in millions. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet