Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.a. Journalize the transactions of February 11, April 30, and August 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?
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.a. Journalize the transactions of February 11, April 30, and August 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?
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 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.
a. Journalize the transactions of February 11, April 30, and August 22.
b. What is the balance in Paid-In Capital from Sale of
c. For what reasons might Lava Lake have purchased the treasury stock?
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