Lava Lake Inc bottles and distributes spring water On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share On April 30, Lava Lake Inc sold 90,000 of the reacquired shares at $20 per share On August 22, Lava Lake Inc sold 30,000 shares at $15 per ...

a Feb 11 Treasury Stock 180000 shares 17 3060000 Cash 3060000 A ...

Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake

Question:

Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.
a. Journalize the transactions of February 11, April 30, and August 22.
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 Lava 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...