Question 3

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2018. In payment for the $24.6 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 $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 entry for LCD's purchase of the components on November 1, 2018 and the first installment payment on November 30, 2018. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2018? Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entry for LCD's purchase of the components on November 1, 2018 and the first installment payment on 30, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry requ first account field.) 1 2 2 > Record the purchase of the components. Note: Enter debits before credits. General Journal Debit Credit Date November 01, 2018 Record entry Clear entry View general Journal Journal entry worksheet