Deer Creek Inc bottles and distributes spring water On April 27 of the current year, Deer Creek reacquired 15,000 shares of its common stock at $60 per share On July 13, Deer Creek sold 9,000 of the reacquired shares at $72 per share The remaining 6,000 shares were sold at $59 per share on October ...

a Apr 27 Treasury Stock 900000 Cash 900000 July 13 Cash 648000 Treasury Stock 9000 60 540000 Pai ...

Deer Creek Inc. bottles and distributes spring water. On April 27 of the current year, Deer Creek

Question:

Deer Creek Inc. bottles and distributes spring water. On April 27 of the current year, Deer Creek reacquired 15,000 shares of its at $60 per share. On July 13, Deer Creek sold 9,000 of the reacquired shares at $72 per share. The remaining 6,000 shares were sold at $59 per share on October 8.
a. Journalize the transactions of April 27, July 13, and October 8.
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 Deer Creek have purchased the treasury stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...