Prepare the journal entry for dcls purchase

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Reference no: EM13176564

DCL Industries purchased a supply of mechanical components from E Corporation on November 1, 2011. In payment for the $48,000 purchase, DCL 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%.

Required:

1. Prepare the journal entry for DCL'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?

Reference no: EM13176564

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