Luke Company sold some machinery to View Company on January 1, 2017, for which the cash selling price was $758,200. View entered into an installment sales contract with Lake at a 10% interest rate. The contract required payments of $200,000 a year over five years with the first payment due on December 31, 2017.  Required: Prepare an amortization schedule that shows what portion of each $200,000 payment will be shown as interest income over the period 2017-2021.

Vd

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.8 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?

On January 1, 2020 Warner Company contracts to lease equipment for 5 years, agreeing tomake a payment of $120,987 at the beginning of each year, starting January 1, 2020. The leasedequipment is to be capitalized at $550,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Warner'sincremental borrowing rate is 6%, and the implicit rate in the lease is 5%, which is known byWarner. Title to the equipment transfers to Warner at the end of the lease. The asset has anestimated useful life of 5 years and no residual value.1. Explain the probable relationship of the $550,000 amount to the lease arrangement.2. Prepare the journal entry or entries that Warner should record on January 1, 2020.3. Prepare the journal entries to record amortization of the leased asset and interestexpense for the year 2020.4. Prepare the journal entry to record the lease payment of January 1, 2021, assumingreversing entries are not…

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $25.2 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 18%.(FV of $1, PV of $1, 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?