D Industries purchased a supply of electronic components from
Entel Corporation on November 1, 2018. In payment for the $24.1
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?
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