B what is the balance in paid in capital from sale of

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b.What is the balance inPaid-In Capitalfrom Sale of Treasury Stock on December 31 ofthe current year?
c.For what reasons might Lava Lake have purchased the treasury stock?
9. Treasury StockTransactionsBiscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the currentyear, Biscayne Bay Water Inc. reacquired 2,400 shares of itscommon stockat $57 pershare. On September 6, Biscayne Bay Water Inc. sold 1,800 of the reacquired shares at$61 per share. The remaining 600 shares were sold at $54 per share on November 30.a.Journalize the transactions of May 14, September 6, and November 30. For a compoundtransaction, if an amount box does not require an entry, leave it blank.
May14Treasury Stock136800Cash136800Sept.6Cash109800Treasury Stock102600Paid-in Capital from Sale ofTreasury Stock7200Nov.30Cash32400Paid-in Capital from Sale ofTreasury Stock1800Treasury Stock34200The repurchase of shares, known as treasury stock, is typically recorded using thecost method. When the treasury stock is resold, what is the company receiving? Whatis it giving up? Keep in mind the price paid to buy the treasury stock and the price theshares are resold for at a later date.
b.What is the balance inPaid-In Capitalfrom Sale of Treasury Stock on December 31 of thecurrent year?
c.Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the
d.For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?
Consider what entries might have affected the value of the paid-in capital account.Review why companies may repurchase their stock.
10.ReportingPaid-In CapitalThe following accounts and their balances were selected from the adjusted trial balanceof Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscalyear:Common Stock, no par, $14 stated value$560,000Paid-In Capital from Sale of Treasury Stock344,600Paid-In Capital in Excess of Par—Preferred Stock103,680

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Term
Fall
Professor
Spinozzi

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