American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed

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American Food Services Inc Leased A Packaging Machine From Barton And Barton Corporation Barton And Barton Completed 1 (25.74 KiB) Viewed 8 times

American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. The lease agreement for the $4.2 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%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. 2. Prepare an amortization schedule for the four-year term of the lease. 3. & 4. Prepare the appropriate entries related to the lease on December 31, 2021 and 2023.

Req 1 Req 2 Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2021. (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.) View transaction list < Journal entry worksheet 1 Req 3 and 4 Record the beginning of the lease for American Food Services. Note: Enter debits before credits. Date January 01, 2021 Right-of-use asset Lease payable Record entry General Journal Clear entry Debit Credit 4 View general journal >

Req 1 Year Req 2 Prepare an amortization schedule for the four-year term of the lease. (Enter your answers in whole dollars and not in millions. Round your answers to the nearest whole dollar. Enter all amounts as positive values.) 2021 2022 2023 2024 Total Req 3 and 4 Lease Payments Lease Amortization Schedule Decrease in Balance Effective Interest 0 < Req 1 0 Outstanding Balance Req 3 and 4 >

Req 1 Req 2 Prepare the appropriate entries related to the lease on December 31, 2021 and 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers the nearest whole dollar.) View transaction list < Journal entry worksheet 1 2 Req 3 and 4 3 Date December 31, 2021 Record the lease payment and interest expense for American Food Services. Note: Enter debits before credits. Record entry 4 General Journal Clear entry < Req 2 Debit Credit View general journal Req 3 and 4