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 d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock? 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. None of these reasons. All of these reasons.
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 d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock? 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. None of these reasons. All of these reasons.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with part a and part d answers thanku
Transcribed Image Text: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 blank.
May 14
Sept. 6
Nov. 30
▾
d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?
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.
None of these reasons.
All of these reasons.
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