Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 24,200 shares of its common stock at $79 per share. On September 6, Biscayne Bay Water Inc. sold 15,200 of the reacquired shares at $85 per share. The remaining 9,000 shares were sold at $76 per share on November 30.

a. Journalize the transactions of May 14, September 6, and November 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

a. What is the balance in Paid-In Capital from 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.

The company wishes to receive more of its own dividends.

To provide shares for resale to employees.

For reissuance to employees as a bonus according to stock purchase agreements.

The company wishes to increase the par value of its stock.

To support the market price of the stock.