Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water reacquired 2,600 shares of its common stock at $48 per share. On September 6, Biscayne Bay Water sold 2,000 of the reacquired shares at $50 per share. The remaining 600 shares were sold at $45 per share on November 30.

Question Content Area

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

May 14	CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury StockCash	Cash	Cash
Sept. 6	CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury StockCash	Cash	Cash
	CashCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockPaid-in Capital from Sale of Treasury Stock	Paid-in Capital from Sale of Treasury Stock	Paid-in Capital from Sale of Treasury Stock
Nov. 30	CashCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury StockCash	Cash	Cash
	Common StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockRetained EarningsPaid-in Capital from Sale of Treasury Stock	Paid-in Capital from Sale of Treasury Stock	Paid-in Capital from Sale of Treasury Stock
	CashCommon StockPaid-in Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockTreasury StockTreasury Stock	Treasury Stock	Treasury Stock

Question Content Area

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 3533c1fe3fddf91_1

CreditDebitCredit

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

Assets sectionLiabilities sectionStockholders' Equity sectionStockholders' Equity section

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

To support the market price of the stock.To provide shares for resale to employees.For reissuance to employees as a bonus according to stock purchase agreements.None of these reasons.All of these reasons.All of these reasons.