On January 1,2024, the Apex Company exchanged some shares of common stock it had been...
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Accounting
On January the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January The income statement reported $ in interest revenue from this note and a $ gain on sale of investment in stock. The stock's book value was $ The company's fiscal year ends on December
Required:
What is the note's effective interest rate?
Reconstruct the journal entries to record the sale of the stock on January and the adjusting entry to record interest revenue at the end of The company records adjusting entries only at yearend.
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