treasury Stock Transactions

Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water reacquired 2,200 shares of its common stock at $54 per share. On September 6, Biscayne Bay Water sold 1,600 of the reacquired shares at $58 per share. The remaining 600 shares were sold at $51 per share on November 30.

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	Cash	fill in the blank 48e622ffffb5ffe_2	fill in the blank 48e622ffffb5ffe_3
		fill in the blank 48e622ffffb5ffe_5	fill in the blank 48e622ffffb5ffe_6
Sept. 6		fill in the blank 48e622ffffb5ffe_8	fill in the blank 48e622ffffb5ffe_9
		fill in the blank 48e622ffffb5ffe_11	fill in the blank 48e622ffffb5ffe_12
		fill in the blank 48e622ffffb5ffe_14	fill in the blank 48e622ffffb5ffe_15
Nov. 30		fill in the blank 48e622ffffb5ffe_17	fill in the blank 48e622ffffb5ffe_18
		fill in the blank 48e622ffffb5ffe_20	fill in the blank 48e622ffffb5ffe_21
		fill in the blank 48e622ffffb5ffe_23	fill in the blank 48e622ffffb5ffe_24

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The repurchase of shares, known as treasury stock, is typically recorded using the cost method. When the treasury stock is resold, what is the company receiving? What is it giving up? Keep in mind the price paid to buy the treasury stock and the price the shares are resold for at a later date.

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 508600069f97ff8_1

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 stoc