Mountain Springs Inc bottles and distributes spring water On May 2 of the current year, Mountain Springs reacquired 3,000 shares of its common stock at $72 per share On August 14, Mountain Springs sold 2,500 of the reacquired shares at $76 per share The remaining 500 shares were sold at $70 per sha...

a May 2 Treasury Stock 216000 Cash 216000 Aug 14 Cash 190000 Treasury Stock 180000 PaidIn Capit ...

Mountain Springs Inc. bottles and distributes spring water. On May 2 of the current year, Mountain Springs

Question:

Mountain Springs Inc. bottles and distributes spring water. On May 2 of the current year, Mountain Springs reacquired 3,000 shares of its at $72 per share. On August 14, Mountain Springs sold 2,500 of the reacquired shares at $76 per share. The remaining 500 shares were sold at $70 per share on November 7.
a. Journalize the transactions of May 2, August 14, and November 7.
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 Mountain Springs 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...