User Account

All Pages

Reconstruct the journal entries to record the sale of stock

Assignment Help Accounting Basics
Reference no: EM132677876

On January 1, 2021, 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, 2022. The 2021 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stock's book value was $16,000. The company's fiscal year ends on December 31.

Required:

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

Problem 2. Reconstruct the journal 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 entries only at year-end.

Reference no: EM132677876

Questions Cloud

Estimate the appropriate balance for zuo allowance : Estimate the appropriate 12/31/2021 balance for Zuo's allowance for uncollectible accounts.Calculate Zuo's 12/31/2021 net accounts receivable balance.
Relationship between the firms strategy and its structure : The implication of a firm's international operations for organizational structure - relationship between the firm's strategy and its structure
Prepare journal entries to record the sale of merchandise : Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021
Discuss how afcfta could be trade creating free trade area : The biggest economic news in recent history is the formation of the biggest free trade area in the world (the African Continental Free Trade Area, AfCFTA).
Reconstruct the journal entries to record the sale of stock : Reconstruct the journal 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.
What organizations can do to reduce burden of digitalization : Please review the article and define the various technologies that are emerging as noted in the article. Note how these emerging technologies are impacting.
Develop a scoring sheet for your interviews : Direction sheet for conducting the interview in that you could hand this assignment over to any individual and they could competently conduct the interview
What amount of sales revenue would millipede recognize : What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction? (Round your final answer to nearest whole dollar.)
Determine the correct balance of cash and cash equivalents : Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd