FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1
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 12%.
Required:
1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on
November 30, 2024.
3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024?
Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1, PVA of $1. FVAD of $1 and PVAD of $1)
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November
30, 2024.
Note: 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
1
Date
November 01,
General Journal
Debit
Credit
2024
Inventory
Notes payable
25,100,000
25,100,000
Show less A
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Transcribed Image Text:LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1 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 12%. Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. Note: 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 1 Date November 01, General Journal Debit Credit 2024 Inventory Notes payable 25,100,000 25,100,000 Show less A
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