LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24.3 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 S1, PVA of S1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
Required:
November 30, 2021.
1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2021 and the first installment payment on
3. What is the amount of Interest expense that LCD will report in its income statement for the year ended December 31, 2021?