Problem
Lawn Smart Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On May 29 of the current year, Lawn Smart Inc. reacquired 19,900 shares of its common stock at $19 per share. On August 11, 13,500 of the reacquired shares were sold at $24 per share, and on October 30, 5,100 of the reacquired shares were sold at $20.
Required:
A. Journalize the transactions of May 29, August 11, and October 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. What is the balance in Treasury Stock on December 31 of the current year?
D. How will the balance in Treasury Stock be reported on the balance sheet?