Deer Creek Inc. bottles and distributes spring water. On April 27 of the current year, Deer Creek reacquired 15,000 shares of its common stock
 at $60 per share. On July 13, Deer Creek sold 9,000 of the reacquired shares at $72 per share. The remaining 6,000 shares were sold at $59 per share on October 8.
a. Journalize the transactions of April 27, July 13, and October 8.
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 Deer Creek have purchased the treasury stock?

a. Apr. 27 Treasury Stock........................................... 900,000

Cash.................................................................. 900,000

July 13 Cash........................................................... 648,000

Treasury Stock (9,000 × $60)........................... 540,000

Paid-In Capital from Sale of

Treasury Stock............................................ 108,000

Oct. 8 Cash........................................................... 354,000

Paid-In Capital from Sale of

Treasury Stock......................................... 6,000

Treasury Stock (6,000 × $60)........................... 360,000

b. $102,000 ($108,000 - $6,000) credit

c. Deer Creek may have purchased the stock to support the market price of the stock, to provide shares for resale to employees, or for reissuance to employees as a bonus according to stock purchase agreements.