LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24 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%. A. Calculate the monthly payment B. Prepare the amortization schedule for the note C. Prepare the journal entry for the purchase on the electronic components on November 1, 2021. D. Prepare the journal entry for the following dates: • For the installment note payment on November 31, 2021 • For the installment note payment on October 31, 2022

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $24 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%. A. Calculate the monthly payment B. Prepare the amortization schedule for the note C. Prepare the journal entry for the purchase on the electronic components on November 1, 2021. D. Prepare the journal entry for the following dates: • For the installment note payment on November 31, 2021 • For the installment note payment on October 31, 2022

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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