LCD Industries purchased a supply of electronic components fromEntel Corporation on November 1, 2013. In payment for the $34million purchase, LCD issued a 1-year installment note to be paidin equal monthly payments at the end of each month. The paymentsinclude 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 appropriatefactor(s) from the tables provided.)
Required:
1. Prepare the journal entry for LCDâs purchase of the componentson November 1, 2013. (Enter your answers in whole dollars.If no entry is required for a transaction, select "No journal entryrequired" in the first account field.)
2. Prepare the journal entry for the first installment payment onNovember 30, 2013. (Enter your answers in whole dollars. Ifno entry is required for a transaction, select "No journal entryrequired" in the first account field.)
3. What is the amount of interest expense that LCD will report inits income statement for the year ended December 31, 2013?(Enter your answers in whole dollars.)
LCD Industries purchased a supply of electronic components fromEntel Corporation on November 1, 2013. In payment for the $34million purchase, LCD issued a 1-year installment note to be paidin equal monthly payments at the end of each month. The paymentsinclude 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 appropriatefactor(s) from the tables provided.) |
| Required: |
| 1. | Prepare the journal entry for LCDâs purchase of the componentson November 1, 2013. (Enter your answers in whole dollars.If no entry is required for a transaction, select "No journal entryrequired" in the first account field.) |
| 2. | Prepare the journal entry for the first installment payment onNovember 30, 2013. (Enter your answers in whole dollars. Ifno entry is required for a transaction, select "No journal entryrequired" in the first account field.) |
| 3. | What is the amount of interest expense that LCD will report inits income statement for the year ended December 31, 2013?(Enter your answers in whole dollars.) |
Related questions
| LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2016. In payment for the $25.0 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%. (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 LCDâs purchase of the components on November 1, 2016 and the first installment payment on November 30, 2016. (Enter your answers in whole dollars. If no journal entry is required for a transaction, select "No journal entry required" in the first account field.) |
| LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2016. In payment for the $25.0 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%. (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 LCDâs purchase of the components on November 1, 2016 and the first installment payment on November 30, 2016. (Enter your answers in whole dollars. If no journal entry is required for a transaction, select "No journal entry required" in the first account field.) |
| 3. | What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2016?. (Enter your answers in whole dollars.) |
| Little Company borrowed $53,000 from Sockets on January 1, 2016, and signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 6% is 2.67301. (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.)
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