Question

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2013. In payment for the $37 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%. (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.)

Prepare the journal entry for LCD’s purchase of the components on November 1, 2013. (Enter your answers in whole dollars. If no entry is required for a transaction, select “No journal entry required” in the first account field.)