Treasury Stock Transactions

Banff Water Inc. bottles and distributes spring water. On April 2 of the current year, Banff Water Inc. reacquired 30,000 shares of its common stock at $33 per share.

Treasury Stock Transactions Banft Water Inc. bottles and distributes spring water. On April 2 of the current year, Banft Water Inc. reacquired 30,000 shares of its common stock at $33 per share. a. What is the balance of Treasury Stock on December 31 of the current year? 990,000 b. Where wil the balance of Treasury Stock be reported on the balance sheet? In the stockholders' equity section as a reduction c. All of the following are reasons that Banft Water Inc. may have purchased the treasury stock except: to increase assets. d. Assume that on January 25 of the rollowing year, BanfT Water Inc. sold 20,000 shares of its treasury stock for $40 per share. Ilustrate the effects on the accounts and financial statements of the sale of the treasury stock. Ir no account or activity is affected, select "No effect" from the dropdown Est and leave the responding number entry box blank. Enter account decreases and cash outnws as negative amounts. Balance Sheet Statement of Assets Stockholders Equity Cash Flows Cash v - No effect Treasury stock Paid-in capital from treasury stock v an. 25 800,000 800,000 X 80,000X Statement of Cash Flows Income Statement 800,000 No effect Treasury Stock Transactions Banft Water Inc. bottles and distributes spring water. On April 2 of the current year, Banft Water Inc. reacquired 30,000 shares of its common stock at $33 per share. a. What is the balance of Treasury Stock on December 31 of the current year? 990,000 b. Where wil the balance of Treasury Stock be reported on the balance sheet? In the stockholders' equity section as a reduction c. All of the following are reasons that Banft Water Inc. may have purchased the treasury stock except: to increase assets. d. Assume that on January 25 of the rollowing year, BanfT Water Inc. sold 20,000 shares of its treasury stock for $40 per share. Ilustrate the effects on the accounts and financial statements of the sale of the treasury stock. Ir no account or activity is affected, select "No effect" from the dropdown Est and leave the responding number entry box blank. Enter account decreases and cash outnws as negative amounts. Balance Sheet Statement of Assets Stockholders Equity Cash Flows Cash v - No effect Treasury stock Paid-in capital from treasury stock v an. 25 800,000 800,000 X 80,000X Statement of Cash Flows Income Statement 800,000 No effect