Question: Aspen Inc. bottles and distributes spring water. On August 1 of the current year, Aspen Inc. reacquired 12,000 shares of its common stock at $36

Aspen Inc. bottles and distributes spring water. On August 1 of the current year, Aspen Inc. reacquired 12,000 shares of its common stock at $36 per share. On September 23, Aspen Inc. sold 7,500 of the reacquired shares at $38 per share. The remaining 4,500 shares were sold at $33 per share on December 29.

a. Journalize the transactions of August 1, September 23, and December 29.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

c. Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the balance sheet?

d. For what reasons might Aspen Inc. have purchased the treasury stock?

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