The controller of the Red Wing Corporation is in the process of preparing the company's 2018 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered: a. Balances in the company's accounts at the First National Bank; checking $13,700, savings $22,300. b. Undeposited customer checks of $5,400. c. Currency and coins on hand of $600. d. Savings account at the East Bay Bank with a balance of $420,000. This account is being used to accumulate cash for future plant expansion (in 2020). e. $24,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a $120,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2021. f. U.S. Treasury bills; 2-month maturity bills totaling $17,000, and 7-month bills totaling $22,000. Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2018 balance sheet. Exercise 7-17 Interest-bearing note receivable; solving for unknown rate [LO7-7] 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 $3,630 in interest revenue from this note and a $7,300 gain on sale of investment in stock. The stock's book value was $29,000. The company's fiscal year ends on December 31. 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