Beaverhead Creek Inc. bottles and distributes spring water. On April 27 of the current year, Beaverhead Creek reacquired 4,500 shares of its common stock at $86 per share. On July 13, Beaverhead Creek sold 3,200 of the reacquired shares at $93 per share. The remaining 1,300 shares were sold at $83 per share on October 8.

a. Journalize the transactions of April 27, July 13, and October 8. For a compound transaction, if an amount box does not require an entry, leave it blank.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

c. For what reasons might Beaverhead Creek have purchased the treasury stock?