60.1K

Verified Solution

Link Copied!

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24.7 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. 6. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2021 and the first installment payment on November 30, 2021. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2021? Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entries for LCD's purchase of the components on November 1, 2021 and the first installment payment on Novembe 30, 2021. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet NO General Journal Debit Credit Date November 01 2021 Check my work LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24.7 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 24%.(FV of $1, PV of S1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2021 and the first installment payment on November 30, 2021. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2021? Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2021? (Enter your answer in whole dollars.) 2021 interest expense

Answer & Explanation Solved by verified expert

See Answer