Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water reacquired 2,400 shares of its common stock at $62 per share. On September 6, Biscayne Bay Water sold 1,700 of the reacquired shares at $65 per share. The remaining 700 shares were sold at $58 per share on November 30.

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a. Journalize the transactions of May 14, September 6, and November 30. If an amount box does not require an entry, leave it blank.

DateAccountDebitCreditMay 14CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury Stock- Select -- Select - CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury Stock- Select -- Select -Sept. 6CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury Stock- Select -- Select - CashCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury Stock- Select -- Select - CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred Stock- Select -- Select -Nov. 30CashCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury Stock- Select -- Select - Common StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockRetained Earnings- Select -- Select - CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury Stock- Select -- Select -

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b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? fill in the blank 1 of 1$

CreditDebit

c. Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the balance sheet?

Assets sectionLiabilities sectionStockholders' Equity section

d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?