Question
In: Accounting
Treasury Stock Transactions Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of...
Treasury Stock Transactions
Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 2,500 shares of its common stock at $63 per share. On September 6, Biscayne Bay Water Inc. sold 1,900 of the reacquired shares at $67 per share. The remaining 600 shares were sold at $59 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 | Treasury Stock | ||
| Cash | |||
| Sept. 6 | Cash | ||
| Treasury Stock | |||
| Paid-in Capital from Sale of Treasury Stock | |||
| Nov. 30 | Cash | ||
| Paid-in Capital from Sale of Treasury Stock | |||
| Treasury Stock |
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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?
$ Credit
c. Where will the balance in Paid-In Capital
from Sale of Treasury Stock be reported on the balance sheet?
Stockholders' Equity section
d. For what reasons might Biscayne Bay Water
Inc. have purchased the treasury stock?
All of these reasons.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Treasury Stock Transactions Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of...
Treasury Stock Transactions
Biscayne Bay Water Inc. bottles and distributes spring water. On
May 14 of the current year, Biscayne Bay Water Inc. reacquired
2,300 shares of its common stock at $69 per share. On September 6,
Biscayne Bay Water Inc. sold 1,700 of the reacquired shares at $74
per share. The remaining 600 shares were sold at $64 per share on
November 30.
a. Journalize the transactions of May 14,
September 6, and November 30. For a compound transaction,...
Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year,...
Biscayne Bay Water Inc. bottles and distributes spring water. On
May 14 of the current year, Biscayne Bay Water Inc. reacquired
26,550 shares of its common stock at $67 per share. On September 6,
Biscayne Bay Water Inc. sold 12,750 of the reacquired shares at $73
per share. The remaining 13,800 shares were sold at $64 per share
on November 30.
Required:
A.
Journalize the transactions of
May 14, September 6, and November 30. Refer to the Chart of
Accounts...
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Lava Lake Inc. bottles and distributes spring water. On February
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32,400 of the reacquired shares at $49 per share. On August 22,
Lava Lake Inc. sold 7,900 shares at $41 per share.
Required:
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Journalize the transactions of
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Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic...
Mystic Lake Inc. bottles and distributes spring water. On July 9
of the current year, Mystic Lake reacquired 60,000 shares of its
common stock at $42 per share. On September 22, Mystic Lake sold
45,000 of the reacquired shares at $51 per share. The remaining
15,000 shares were sold at $40 per share on November 23.
a. Journalize the transactions of July 9,
September 22, and November 23. If an amount box does not require an
entry, leave it blank....
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic...
Mystic Lake Inc. bottles and distributes spring water. On July 9
of the current year, Mystic Lake reacquired 40,300 shares of its
common stock at $42 per share. On September 22, Mystic Lake sold
32,400 of the reacquired shares at $49 per share. The remaining
7,900 shares were sold at $41 per share on November 23.
Required: a. Journalize the transactions of July 9, September
22, and November 23. Refer to the Chart of Accounts for exact
wording of account...
Exercise 2) Price, Inc., bottles and distributes mineral water from the company’s natural springs in northern...
Exercise 2) Price, Inc., bottles and distributes mineral water
from the company’s natural springs in northern Oregon. Price
markets two products: 12-ounce disposable plastic bottles and
1-gallon reusable plastic containers. Required: A) For 2021, Price
marketing managers project quarterly sales of 1,260,000 12-ounce
bottles and 547,500 1-gallon containers. Average selling prices are
estimated at $0.20 per 12-ounce bottle and $1.50 per 1-gallon
container. Prepare a revenues budget for Price, Inc., for the year
ending December 31, 2021. B) Price begins...
The label on the bottles of spring water of a certain brand says 250 milliliters. A...
The label on the bottles of spring water of a certain brand says
250 milliliters. A random sample of 20 bottles has an average of
248 milliliters. Suppose we know that the population, which is
normally distributed, has a standard deviation of 2.5 milliliters.
Does this seem to indicate that the population mean volume of a
bottle is 250 milliliters?
Treasury Stock Transactions A. Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and...
Treasury Stock Transactions
A. Yard Spray Inc. develops and produces spraying equipment for
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year, Yard Spray Inc. reacquired 42,000 shares of its common stock
at $36 per share. On June 14, 19,000 of the reacquired shares were
sold at $43 per share, and on November 23, 16,000 of the reacquired
shares were sold at $39. a. Journalize the transactions of January
31, June 14, and November 23. If an...
Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses....
Treasury Stock Transactions
SprayCo Inc. develops and produces spraying equipment for lawn
maintenance and industrial uses. On March 9 of the current year,
SprayCo reacquired 12,900 shares of its common stock at $26 per
share. On June 9, 8,100 of the reacquired shares were sold at $28
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sold at $28.
a. Journalize the transactions of March 9, June
9, and November 13. If an amount box does not...
Describe the method(s) used to account for treasury stock transactions.
Describe the method(s) used to account for treasury stock
transactions.
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