Bundle: Accounting, Loose-leaf Version, 27th + CengageNOWv2, 2 terms Printed Access Card
27th Edition
ISBN: 9781337587426
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 13, Problem 13.16EX
(a)
To determine
To prepare: The
B.
To determine
The balance in paid in capital from sale of treasury stock on December 31 of the current year.
c.
To determine
The location where the balance in paid in capital from sale of treasury stock be reported on the balance sheet.
d.
To determine
To discuss: The reason, for which Incorporation B has purchased the treasury stock.
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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 $52
per share. On September 6, Biscayne Bay Water Inc. sold 1,800 of the reacquired shares at $55 per share. The remaining 500 shares were sold at $49 per share on
November 30.
a. Journalize the transactions of May 14, September 6, and November 30. If an amount box does not require an entry, leave it blank.
May 14
Sept. 6
Nov. 30
36
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?
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Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year,
Mystic Lake reacquired 3,800 shares of its common stock at $91 per share. On
September 22, Mystic Lake sold 2,700 of the reacquired shares at $101 per share. The
remaining 1,100 shares were sold at $86 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.
July 9
Sept. 22
UD
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31
of the current year?
Nov. 23
c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?
Treasury Stock Transactions
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 3,700 shares of its common stock at $86 per share. On September 22, Mystic Lake sold 2,600 of the reacquired shares at $96 per share. The remaining 1,100 shares were sold at $82 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.
July 9
Treasury Stock
fill in the blank 2f903602bf9afea_2
fill in the blank 2f903602bf9afea_3
Cash
fill in the blank 2f903602bf9afea_5
fill in the blank 2f903602bf9afea_6
Sept. 22
Cash
fill in the blank 2f903602bf9afea_8
fill in the blank 2f903602bf9afea_9
Treasury Stock
fill in the blank 2f903602bf9afea_11
fill in the blank 2f903602bf9afea_12
Paid-In Capital from Sale of Treasury Stock
fill in the blank 2f903602bf9afea_14
fill in the blank 2f903602bf9afea_15
Nov. 23
Cash
fill in the…
Chapter 13 Solutions
Bundle: Accounting, Loose-leaf Version, 27th + CengageNOWv2, 2 terms Printed Access Card
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