Treasury Stock Transactions

Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,800 shares of its common stock at $86 per share. On April 30, Lava Lake Inc. sold 2,700 of the reacquired shares at $96 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $81 per share.

a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank.

Feb. 11		fill in the blank 6b8c57f9b013fc2_2	fill in the blank 6b8c57f9b013fc2_3
		fill in the blank 6b8c57f9b013fc2_5	fill in the blank 6b8c57f9b013fc2_6
Apr. 30		fill in the blank 6b8c57f9b013fc2_8	fill in the blank 6b8c57f9b013fc2_9
		fill in the blank 6b8c57f9b013fc2_11	fill in the blank 6b8c57f9b013fc2_12
		fill in the blank 6b8c57f9b013fc2_14	fill in the blank 6b8c57f9b013fc2_15
Aug. 22		fill in the blank 6b8c57f9b013fc2_17	fill in the blank 6b8c57f9b013fc2_18
		fill in the blank 6b8c57f9b013fc2_20	fill in the blank 6b8c57f9b013fc2_21
		fill in the blank 6b8c57f9b013fc2_23	fill in the blank 6b8c57f9b013fc2_24

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 0942e9fb6050fe4_1

c. For what reasons might Lava Lake have purchased the treasury stock?