Accounting
27th Edition
ISBN: 9781337514071
Author: WARREN
Publisher: Cengage
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Chapter 13, Problem 13.14EX
a.
To determine
To journalize: The transactions of February 11, April 30, and August 22.
b.
To determine
The balance in paid in capital from sale of treasury stock on December 31 of the current year.
c.
To determine
To discuss: The reason, for which Incorporation L has purchased the treasury stock.
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Treasury Stock Transactions
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 3,600 shares of its common stock at $54 per share. On April 30, Lava Lake Inc. sold 2,500 of the reacquired shares at $60 per share. On August 22, Lava Lake Inc. sold 1,100 shares at $51 per share.
a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank.
Feb. 11
Treasury Stock
fill in the blank 00d7cbfe6fcbfc2_2
fill in the blank 00d7cbfe6fcbfc2_3
Cash
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Apr. 30
Cash
fill in the blank 00d7cbfe6fcbfc2_8
fill in the blank 00d7cbfe6fcbfc2_9
Treasury Stock
fill in the blank 00d7cbfe6fcbfc2_11
fill in the blank 00d7cbfe6fcbfc2_12
Paid-In Capital from Sale of Treasury Stock
fill in the blank 00d7cbfe6fcbfc2_14
fill in the blank 00d7cbfe6fcbfc2_15
Aug. 22
Cash
fill in the blank…
Treasury Stock Transactions
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 4,300 shares of its common stock at $61 per share. On April 30, Lava Lake Inc. sold 3,000 of the reacquired shares at $68 per share. On August 22, Lava Lake Inc. sold 1,300 shares at $58 per share.
a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank.
Feb. 11
fill in the blank b3225000303cf97_2
fill in the blank b3225000303cf97_3
fill in the blank b3225000303cf97_5
fill in the blank b3225000303cf97_6
Apr. 30
fill in the blank b3225000303cf97_8
fill in the blank b3225000303cf97_9
fill in the blank b3225000303cf97_11
fill in the blank b3225000303cf97_12
fill in the blank b3225000303cf97_14
fill in the blank b3225000303cf97_15
Aug. 22
fill in the blank b3225000303cf97_17
fill in the blank b3225000303cf97_18
fill in the blank…
Treasury Stock Transactions
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?
Chapter 13 Solutions
Accounting
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - Prob. 2DQCh. 13 - A corporation with both preferred stock and common...Ch. 13 - An owner of 2,500 shares of Simmons Company common...Ch. 13 - Prob. 5DQCh. 13 - What is the primary purpose of a stock split?Ch. 13 - Prob. 7DQCh. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Indicate how prior period adjustments should he...
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