Sweet Water Inc bottles and distributes spring water On July 15 of the current year, Sweet Water Inc reacquired 24,000 shares of its common stock at $60 per share On August 10, Sweet Water Inc sold 19,000 of the reacquired shares at $63 per share The remaining 5,000 shares were sold at $56 per shar...

Sweet Water Inc. bottles and distributes spring water. On July 15 of the current year, Sweet Water

Question:

Sweet Water Inc. bottles and distributes spring water. On July 15 of the current year, Sweet Water Inc. reacquired 24,000 shares of its at $60 per share. On August 10, Sweet Water Inc. sold 19,000 of the reacquired shares at $63 per share. The remaining 5,000 shares were sold at $56 per share on December 18.
(a) Journalize the transactions of July 15, August 10, and December 18.
(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 Sweet Water Inc. 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...