12-9. On January 1, 2018, 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 1, 2019. The 2018 income statement reported $3,300 in interest revenue from this note and a $6,500 gain on sale of investment in stock. The stock's book value was $21,000. The company's fiscal year ends on December31.

Required:

1. What is the note's effective interest rate?

2. Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry to record interest revenue at the end of 2018. The company records adjusting entries only at year-end.

Complete this question by entering your answers in the table below.

What is the note's effective interest rate?

Effective interest rate_____________________ _____%

13-9. Complete this question by entering your answers in the spaces below.

Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry to record interest revenue at the end of 2018. The company records adjusting entries only at year-end. (If no entry is required for a transaction/event, type "No journal entry required in the first account field.)

Journal Entry Worksheet

Record the sale of the stock on January 1, 2018.

Date General Journal Debit Credit

January 01, 2018 __________________ _____________ _____________

14-9. Complete this question by entering your answers in the spaces below.

Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry to record interest revenue at the end of 2018. The company records adjusting entries only at year-end. (If no entry is required for a transaction/event, type "No journal entry required" in the first account field.)

Journal entry worksheet

Record interest revenue at the end of 2018.

Note: Enter debits before credits.

Date General Journal Debit Credit

December 31, 2018 _____________________ ______________ ______________