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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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