Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,700 shares of its common stock at $87 per share. On April 30, Lava Lake Inc. sold 2,600 of the reacquired shares at $97 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $82 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? I 1II II
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,700 shares of its common stock at $87 per share. On April 30, Lava Lake Inc. sold 2,600 of the reacquired shares at $97 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $82 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? I 1II II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,700 shares of its common stock at $87 per share. On April
30, Lava Lake Inc. sold 2,600 of the reacquired shares at $97 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $82 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?
100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe513d118-47da-4d2c-9045-463c8cef289a%2F8dcc902c-a47a-4800-a53e-d7d65e3c0c39%2Fyvuyb9k_processed.png&w=3840&q=75)
Transcribed Image Text:Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,700 shares of its common stock at $87 per share. On April
30, Lava Lake Inc. sold 2,600 of the reacquired shares at $97 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $82 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?
100
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