Stockholders' Equity Section of Balance Sheet Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: Common Stock, $10 par $840,000 Paid-In Capital from Sale of Treasury Stock-Common 63,300 Paid-In Capital in Excess of Par-Common Stock 252,000 Paid-In Capital in Excess of Par-Preferred Stock Preferred 4% Stock, $50 par 1,730,000 Retained Earnings 3,646,700 Treasury Stock-Common One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 5,900 shares of common stock held as treasury 103,800 64,900 stock. Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 8 Specialty Auto Racing Inc Stockholders' Equity July 31, 20xx Paid In Capital: Total Paid-In Capital Total Total Stockholders' Equity Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 4,800 shares of its common stock at $88 per share. On April 30, Lava Lake Inc. sold 3,400 of the reacquired shares at $99 per share. On August 22, Lava Lake Inc. sold 1,400 shares at $84 per share. a. Journalize the transactions of February 11, April 30, and August 22. For a compound transaction, if an amount box does not require an entry, leave it blank, Feb. 11 Apr. 30 HII II 11 III Aug. 22 b. What is the balance in Paid-in Capital from Sale of Treasury Stock on December 31 of the current year? C. For what reasons might Lava Lake have purchased the treasury stock