12-9. On January 1, 2018, the Apex Company exchanged some shares of common stock it had...
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 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.
3. The company records adjusting entries only at year-end. Complete this question by entering your answers in the blanks below. What is the note's effective interest rate?
Effective interest rate_____________________ _____%
4. 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 __________________ _____________ _____________
5. 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 _____________________ ______________ ______
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12-9. On January 1, 2018, the Apex Company exchanged some shares
of common stock it had...
12-9. On January 1, 2018, the Apex Company exchanged some shares of common stock it had...
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?...
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60. On January 1, 2018, a company issues 1,000 shares of $1 par value common stock...
60. On January 1, 2018, a company issues 1,000 shares of $1 par value common stock for $20 per share. The journal entry to record this issuance would be: 61. On January 1, 2018, a company issues 1,000 shares of $1 no-par value common stock for $20 per share. The journal entry to record this issuance would be: 62. Suppose a company rents office space for one year, paying $12,000 ($1,000/month) in advance on September 1. Record the adjusting entry...
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On January 1, 2018, Sledge had common stock of $340,000 and
retained earnings of $480,000. During that year, Sledge reported
sales of $350,000, cost of goods sold of $180,000, and operating
expenses of $62,000.
On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge's
outstanding voting stock. At that date, $82,000 of the
acquisition-date fair value was assigned to unrecorded contracts
(with a 20-year life) and $42,000 to an undervalued building (with
a 10-year remaining life).
In 2017, Sledge...
On January 1, 2018, Cameron inc bought 10% of the outstanding common stock of Lake Construction Company for $170 million cash At the date of acquisition of the stock, Lake's net assets nad ฮ fair value of S700 milion. Their book value was S600 million The difference was attributable to the fair value of Lake's buildings and its land exceeding book value. each accounting for one-haif of the difference. Lake's net income for the year ended December 31, 2018, was...
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake Construction Company for $190 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million, The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018,...
On June 30, 2018, the Esquire Company sold some merchandise to a customer for $44,000. In payment, Esquire agreed to accept a 7% note requiring the payment of interest and principal on March 31, 2019. The 7% rate is appropriate in this situation. Required 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection...
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