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?