American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and...
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Accounting
American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January The lease agreement for the $ 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 Bartons implicit interest rate was
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Prepare the journal entry for American Food Services at the beginning of the lease on January
Prepare an amortization schedule for the fouryear term of the lease.
& Prepare the appropriate entries related to the lease on December and
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