Installment Sale Journal Entry
Not what you're looking for?
LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2011. 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%.
1. Prepare the journal entry for LCD's purchase of the components on November 1, 2011.
2. Prepare the journal entry for the first installment payment on November 30, 2011.
3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2011?
Purchase this Solution
Solution Summary
The solution provides the journal entry of installment sale in books of purchaser.
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.