Treasury Stock Transactions

Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 2,700 shares of its common stock at $48 per share. On September 6, Biscayne Bay Water Inc. sold 2,000 of the reacquired shares at $51 per share. The remaining 700 shares were sold at $45 per share on November 30.

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

May 14
Sept. 6
Nov. 30

b. 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?