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Treasury Stock Transactions Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water reacquired 2,500 shares of its common stock at $52 per share. On September 6, Biscayne Bay Water sold 2,100 of the reacquired shares at $55 per share. The remaining 400 shares were sold at $48 per share on November 30. a. Journalize the transactions of May 14, September 6, and November 30. If an amount box does not require an entry, leave it blank. May 14 Sept. 6 II lll II III III Nov. 30 b. What is the balance in Pald-in Capital from Sale of Treasury Stock on December 31 of the current year? c. Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the balance sheet? d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?

Answer 1

Aing: 0 Journal Fuldy's Credit ♡ $130,000 $130,000 Sept 6 Date Gennal Journal Debit May 14 | Treasury stock Alc To Cash ACC (2580 x $52) Cash AIC Dr $115,500 To treasury stock Alc To pacid in Capital from Sale of Treasury stolk Ale Now: 30 А (с Ds $19,200 g De 1 81600 To Vieasury stock Al $109,200 $6,300 Caseh Paridin Capital Pom Sale of Preasyon stock $20.800 b) $4700 Credit $6300-$1600) stockholder's Equity Section

(d) Biscayne Bay water one may have puschased the stock to support the market price of the streek , to provide shares for desale to employees, or for reissuance to employees as a bonus according to stack puschase agreements.

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