Noll Co. was organized on January 1, 2021, with 500,000 auth…

Noll Co. was organized on January 1, 2021, with 500,000 authorized shares of $9 par value common stock. During 2021, Noll had the following capital transactions:January 3:issued 375,000 shares at $14 per shareJuly 27:repurchased 75,000 shares at $10 per shareNovember 27:sold 40,000 shares of treasury stock at $17 per shareNoll Co. records treasury shares using the cost method. Given the abovementioned transactions, what would be the Additional Paid-in Capital—Treasury Stock account balance on December 31, 2021?

Sandy Shoes Foot Inc. is involved in litigation regarding a…

Sandy Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted its attorney and determined that it is probable that they will lose the case. The attorneys estimated a 60% chance of an adverse outcome. If this is the case, their attorney estimated that any payment would be $800,000. Which journal entry (if any) should the company record because of this litigation?