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Question
On March 4 of the current year, Barefoot Bay, Inc. reacquired 5,000 shares of its common stock at $89 per share. On August 7, Barefoot Bay sold 3,500 of the reacquired shares at $100 per share. The remaining 1,500 shares were sold at $88 per share on November 29.
a. Journalize the transactions of March 4, August 7, and November 29.
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
c. Why might Barefoot Bay, Inc. have purchased the treasury stock?
Answer
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