Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (new

Answer:

$600 million

Explanation:

On January 1, 2020, the balance of common stock & APIC is derived as follows:

Common stock & APIC = Paid-In Capital + Capital raised from selling 50 million shares at $20 each - Treasury Stock

This gives:

Paid-In Capital = $500 million

Issuance of 50 million shares at $20 each amounts to:

Treasury Stock involves buying back 20 million shares priced at $45 each.

Inserting the numbers leads to:

Common stock & APIC = $500 million + $1000 million - (20 million shares × $45 each)

Therefore, Common stock & APIC = $1500 million - $900 million = $600 million

Answer: $1,651

Explanation:

The sole cost associated with Internal failure is the expense for fixing the dog beds prior to sale, totaling $1,651.

The remaining costs fall into the following categories:

1. Repairs for dog beds under warranty - External failure cost Seamstress training. -
2. Prevention cost Wages of part-time inspector of products - Appraisal cost
3. The cost of replacements provided to customers for defective dog beds - External failure cost
4. Product liability insurance - External failure cost
5. Inspection of sewing machines during routine maintenance - Appraisal cost Inspection of fabric and thread for defects -
6. Appraisal cost

Result:

The amount he should pay equals = $270,000

Explanation:

The sum due for the investment represents the present value of net income, discounted at a 12% return rate.

The occupancy percentage = 100 - 5= 95%

The net income equals occupancy rate × total income - expenses

                              = 95%× 3,600× 12 - 8,640= 32400

PV of net income = A/r

A = 32400, r = 12%

                            = 32400/0.12

                             =$270000

The amount he should pay equals = $270,000

Answer:

Explanation:

(1) Recording the Transactions:-

Heritage Designs

General Journal

For November, 20Y9

Date            Accounts             Debit                Credit

Nov. 1            Cash                   $50,000

                          Common Stock                          $50,000

Nov. 1             Rent Expense     $4,000  

                           Cash                                   $4,000

Nov. 6            Office Equipment    $15,000  

                          Accounts Payable                   $15,000

Nov. 8            Truck                      $38,500  

                           Cash                                    $5,000

                           Notes Payable                           $33,500

Nov. 10             Supplies              $1,750  

                           Cash                                    $1,750

Nov. 12             Cash                     $11,500  

                            Fees Earned                            $11,500

Nov. 15           Prepaid Insurance     $2,400  

                           Cash                                   $2,400

Nov. 23           Accounts Receivable  $22,300  

                         Fees Earned                            $22,300

Nov. 24            Truck Expense         $1,250  

                            Cash                                    $1,250

Nov. 29          Utilities Expense           $4,500  

                              Cash                                    $4,500

Nov. 29   Miscellaneous Expense      $1,000  

                               Cash                                   $1,000

Nov. 30                Cash                  $9,000  

                         Accounts Receivable                        $9,000

Nov. 30          Wages Expense              $6,800  

                                 Cash                                 $6,800

Nov. 30             Accounts Payable         $3,000  

                                   Cash                                 $3,000

Nov. 30                  Dividends                   $2,500  

                                    Cash                                    $2,500

(2) Posting Transactions to the General Ledger:-

Cash

Date               Items                   Debit                 Credit                Balance

Nov. 1 Common Stock  $50,000                         $50,000

Nov. 1 Rent Expense                                $4,000        $46,000

Nov. 8 Truck                                        $5,000             $41,000

Nov. 10 Supplies                                        $1,750              $39,250

Nov. 12 Fees Earned           $11,500                                 $50,750

Nov. 15 Prepaid Insurance                        $2,400        $48,350

Nov. 24 Truck Expense                        $1,250              $47,100

Nov. 29 Utilities Expense                        $4,500             $42,600

Nov. 29 Miscellaneous Expense               $1,000              $41,600

Nov. 30 Accounts Receivable   $9,000                                 $50,600

Nov. 30 Wages Expense                        $6,800              $43,800

Nov. 30 Accounts Payable                        $3,000              $40,800

Nov. 30 Dividends                                $2,500              $38,300

Accounts Receivable

Date    Items               Debit                      Credit               Balance

Nov. 23 Fees Earned    $22,300                                   $22,300

Nov. 30 Cash                                         $9,000        $13,300

Supplies

Date    Items               Debit                      Credit               Balance

Nov. 10   Cash              $1,750                                $1,750

Prepaid Insurance

Date    Items               Debit                      Credit               Balance

Nov. 15    Cash               $2,400                                 $2,400

Equipment

Date    Items               Debit                      Credit               Balance

Nov. 6 Accounts Payable $15,000                              $15,000

Truck

Date    Items               Debit                      Credit               Balance

Nov. 8 Cash               $5,000                              $5,000

Nov. 8 Notes Payable $33,500                              $38,500

Notes Payable

Date    Items               Debit                      Credit               Balance

Nov. 8 Truck                                      $33,500          $33,500

Accounts Payable

Date    Items               Debit                      Credit               Balance

Nov. 6 Equipment                             $15,000           $15,000

Nov. 30 Cash               $3,000                                          $12,000

Common Stock

Date    Items               Debit                      Credit               Balance

Nov. 1 Cash                                     $50,000    $50,000

Dividends