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 itscommon stockat $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 Required A Journalize the transactions of May 14, September 6, and November 30 Refer to the Chart of Accounts for exact wording of account titles B What is the balance inPaid In Capitalfrom 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 Chart of Accounts CHART OF ACCOUNTS Biscayne Bay Water Inc General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid In Capital in Excess of Par Preferred Stock 331 Paid In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense Equipment 590 Miscellaneous Expense 710 Interest Expense Journal A Journalize the transactions of May 14, September 6, and November 30 Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL 1 2 3 4 5 6 7 8 Final Questions B What is the balance inPaid In Capitalfrom 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 Check all that apply For reissuance to employees as a bonus according to stock purchase agreements To support the market price of the stock The company wishes to increase the par value of its stock To provide shares for resale to employees The company wishes to receive more of its own dividends

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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 itscommon

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 itscommon stockat $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. Required:

A.	Journalize the transactions of May 14, September 6, and November 30. Refer to the Chart of Accounts for exact wording of account titles.
B.	What is the balance inPaid-In Capitalfrom 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?

Chart of Accounts

CHART OF ACCOUNTS

Biscayne Bay Water Inc.

General Ledger

ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

REVENUE
410	Sales
610	Interest Revenue

EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Journal A. Journalize the transactions of May 14, September 6, and November 30. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL

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Final Questions B. What is the balance inPaid-In Capitalfrom 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?

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D. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?Check all that apply.

_____For reissuance to employees as a bonus according to stock purchase agreements. _____To support the market price of the stock _____The company wishes to increase the par value of its stock. _____To provide shares for resale to employees. The company wishes to receive more of its own dividends.