LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.4 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 LCDs 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)