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Exercise $15-2($Algo$)$ Finance lease; calculate lease payments $[$LO$15-2]$

American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January $1,2024.$ The lease agreement for the $$4\mathrm{.}5$ 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 $8\%.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare the journal entry for American Food Services at the beginning of the lease on January $1,2024.$

Prepare an amortization schedule for the four$-$year term of the lease.

& $4.$ Prepare the appropriate entries related to the lease on December $31,2024$ and $2026.$

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Req $1$ Req $2$ Req $3$ and $4$

Prepare an amortization schedule for the four$-$year term of the lease.

Note: Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar.

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