On January 1, 2021, the Apex Company exchanged some shares of common stock it had...
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On January 1, 2021, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note recelvable. The note principal plus interest is due on January 1, 2022. The 2021 income statement reported $2.860 in interest revenue from this note and a $6.600 gain on sale of investment in stock. The stock's book value was $22000. The company's fiscal year ends on December 31 . Required: 1. What is the note's effective interest rate? 2. Reconstruct the joumal entries to record the sale of the stock on January 1, 2021, and the adjusting entry to record interest revenue at the end of 2021 . The company records adjusting entres only at year-end. Complete this question by entering your answers in the tabs below
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