LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The paymentsinclude 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 onNovember 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 2Req 3Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November30, 2024.Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field.View transaction listView journal entry worksheetNo1DateNovember 01,General JournalDebitCredit2024InventoryNotes payable25,100,00025,100,000Show less A

Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

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?

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?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 4E: Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and...

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