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Beaverhead Creek Inc. bottles and distributes spring water. On March 4 of the current year, Beaverhead Creek reacquired 5,000 shares of its common stock at $90 per share.
On August 7, Beaverhead Creek 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) For what reasons might Beaverhead Creek have purchased the treasury stock?
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