Company A purchased a supply of electronic components from Entel Corporation on November 1, 2011. In payment

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Company A purchased a supply of electronic components from Entel Corporation on November 1, 2011. In payment for the $27 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%.

Prepare the following journal entries for Company A. First for the purchase of the components on November 1, 2011,

[Component Inventory]

[Notes Payable]

Prepare the journal entry for the first installment payment on November 30, 2011.

[Interest Expense]

[Note payable]

[Cash]


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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