Treasury Stock Transactions
Beaverhead Creek Inc. bottles and distributes spring water. On April 27 of the current year, Beaverhead Creek reacquired 6,800 shares of its common stock at $67 per share. On July 13, Beaverhead Creek sold 4,800 of the reacquired shares at $74 per share. The remaining 2,000 shares were sold at $64 per share on October 8.
a. Journalize the transactions of April 27, July 13, and October 8. For a compound transaction, if an amount box does not require an entry, leave it blank.
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 Beaverhead Creek have purchased the treasury stock?
Select To support the market price of the stock. To provide shares for resale to employees. For reissuance to employees as a bonus according to stock purchase agreements.