Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 24,200 shares of its common stock at $68 per share. On September 6, Biscayne Bay Water Inc. sold 12,500 of the reacquired shares at $74 per share. The remaining 11,700 shares were sold at $65 per share on November 30.

Required:

A. Journalize the transactions of May 14, September 6, and November 30. Refer to the Chart of Accounts for exact wording of account titles.
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 Biscayne Bay Water Inc. have purchased the treasury stock?

treasury stock   1,645,600 debit

             cash        1,645,600 credit

--to record he purchase of TS--

cash       925,000 debit

    treasury stock         850,000 debit

   additional paid-in TS  75,000 debit

-to record sale of TS above their cost--

cash                         760,500 debit

additional paid-in TS  35,100 debit

           Treasury Stock    795,600 credit

Explanation:

treasury stock cost:

24,200 shares x $68 each = 1,645,600

sale of TS

proceeds:  12,500 x $74 =925,000

cost:           12,500 x $68 = 850,000

additional paid-in TS 75,000

second sale of TS:

proceeds _ 11,700 x $65   760,500

Cost:           11,700 x $68    795,600

 additional paid-in TS          35,100

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer///supply is elastic, and demand is inelastic;