LCD Industries purchased a supply of electronic components from Entel Corporation on November $1,2024.$ In payment for the $$25\mathrm{.}0$ 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 $24\%.$

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,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

 

Answer rating: 100% (QA)

1 Journal Entries for LCDs Purchase of Components and First Installment Payment November 1 2024 Inve... View the full answer