Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 7,200 shares of its common stock at $57 per share. On April 30, Lava Lake Inc. sold 5,000 of the reacquired shares at $64 per share. On August 22, Lava Lake Inc. sold 2,200 shares at $54 per share. a. Journalize the transactions of February 11, April 30, and August 22. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 11 Apr. 30 Aug. 22 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 Lava Lake have purchased the treasury stock? 00

Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 7,200 shares of its common stock at $57 per share. On April 30, Lava Lake Inc. sold 5,000 of the reacquired shares at $64 per share. On August 22, Lava Lake Inc. sold 2,200 shares at $54 per share. a. Journalize the transactions of February 11, April 30, and August 22. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 11 Apr. 30 Aug. 22 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 Lava Lake have purchased the treasury stock? 00

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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