On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $17 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 9% promissory note. Interest was payable at maturity. Quantums fiscal period is the calendar year.

Required:

1. Prepare the journal entry for the issuance of the note by Quantum Technology.

2. & 3. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2021 and journal entry for the payment of the note at maturity.

Record the issuance of the note by Quantum Technology.

Record the adjusting entry for the note by Quantum on December 31, 2021.

Record the payment of the note at maturity.

Complete the below table to calculate the price of a $1.6 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1):

1. Maturity 13 years, interest paid annually, stated rate 9%, effective (market) rate 12%.

2. Maturity 10 years, interest paid semiannually, stated rate 9%, effective (market) rate 12%.

3. Maturity 6 years, interest paid semiannually, stated rate 11%, effective (market) rate 10%.

4. Maturity 10 years, interest paid semiannually, stated rate 11%, effective (market) rate 10%.

5. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%.

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24.2 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 12%.(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 LCDs 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?

Prepare the journal entries for LCDs purchase of the components on November 1, 2021 and the first installment payment on November 30, 2021.

Record the purchase of the components.

Record the first installment payment.

What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2021?