Crystal Lake Inc. bottles and distributes spring water. On March 4 of the current year, Crystal Lake reacquired 33,000 shares of its common stock at $84 per share. On August 27, Crystal Lake Inc. sold 25,000 of the reacquired shares at $90 per share. The remaining 8,000 shares were sold at $80 per share on November 11. a. Journalize the

Chapter 11, Exercises #11

Crystal Lake Inc. bottles and distributes spring water. On March 4 of the current year, Crystal Lake reacquired 33,000 shares of its at $84 per share. On August 27, Crystal Lake Inc. sold 25,000 of the reacquired shares at $90 per share. The remaining 8,000 shares were sold at $80 per share on November 11.
a. Journalize the transactions of March 4, August 27, and November 11.
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 Crystal Lake 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...