Exercise 14-20 (Algo) Installment note; amortization schedule (LO14-3) American Food Services, Inc., acquired a packagin

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Exercise 14 20 Algo Installment Note Amortization Schedule Lo14 3 American Food Services Inc Acquired A Packagin 1 (46.54 KiB) Viewed 18 times

Exercise 14-20 (Algo) Installment note; amortization schedule (LO14-3) American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $4.3 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 9% (FV of Si. PV 01:$1. EVA of S1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2021 2. Prepare an amortization schedule for the four-year term of the installment note. 3. Prepare the journal entry for the first installment payment on December 31, 2021 4. Prepare the journal entry for the third installment payment on December 31, 2023. Complete this question by entering your answers in the tabs below. Reg 2 Req 1 3 and 4 Prepare an amortization schedule for the four year term of the installment note (Enter your answers in whole dollars) Dec.31 Cash Payment Effective interest Decrease in Balance Outstanding Balance 2021 2022 2023