Treasury stock transactions OBJ. 4, 5 Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 23,500 shares of its common stock at $75 per share. On September 6, Biscayne Bay Water Inc. sold 14,000 of the reacquired shares at $81 per share.

The remaining 9,500 shares were sold at $72 per share on November 30.

a. Journalize the transactions of May 14, September 6, and November 30.

b. What is the balance in Paid-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?