Show the journal entry for American Food Services purchase

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Exercise - Instalment note; amortization schedule - 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 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%.

1. Show the journal entry for American Food Services' purchase of the machine on January 1, 2021.

2. Show an amortization schedule for the four-year term of the installment note.

3. List the journal entry for the first installment payment on December 31, 2021.

4. List the journal entry for the third installment payment on December 31, 2023.

Reference no: EM132855869

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