Prepare the journal entry for the third installment payment

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Reference no: EM131211125

American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. In payment for the $6.0 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 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

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

2. Prepare the journal entry for the third installment payment on December 31, 2018.

Reference no: EM131211125

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