Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,100 shares of its common stock at $64 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $72 per share. The remaining 1,500 shares were sold at $61 per share on November 23. a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank. July 9 Treasury Stock fill in the blank 542892fd3fd6014_2 fill in the blank 542892fd3fd6014_3 Cash fill in the blank 542892fd3fd6014_5 fill in the blank 542892fd3fd6014_6 Sept. 22 Cash fill in the blank 542892fd3fd6014_8 fill in the blank 542892fd3fd6014_9 Treasury Stock fill in the blank 542892fd3fd6014_11 fill in the blank 542892fd3fd6014_12 Paid-In Capital from Sale of Treasury Stock fill in the blank 542892fd3fd6014_14 fill in the blank 542892fd3fd6014_15 Nov. 23 Cash fill in the blank 542892fd3fd6014_17 fill in the blank 542892fd3fd6014_18 Paid-In Capital from Sale of Treasury Stock fill in the blank 542892fd3fd6014_20 fill in the blank 542892fd3fd6014_21 Treasury Stock fill in the blank 542892fd3fd6014_23 fill in the blank 542892fd3fd6014_24 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $fill in the blank 85622704805cfa6_1 Debit c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 65E: Treasury Stock Transactions Garrett Inc. had no treasury stock at the beginning of the year. During...

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Treasury Stock Transactions

Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,100 shares of its common stock at $64 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $72 per share. The remaining 1,500 shares were sold at $61 per share on November 23.

a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank.

July 9	Treasury Stock	fill in the blank 542892fd3fd6014_2	fill in the blank 542892fd3fd6014_3
	Cash	fill in the blank 542892fd3fd6014_5	fill in the blank 542892fd3fd6014_6
Sept. 22	Cash	fill in the blank 542892fd3fd6014_8	fill in the blank 542892fd3fd6014_9
	Treasury Stock	fill in the blank 542892fd3fd6014_11	fill in the blank 542892fd3fd6014_12
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 542892fd3fd6014_14	fill in the blank 542892fd3fd6014_15
Nov. 23	Cash	fill in the blank 542892fd3fd6014_17	fill in the blank 542892fd3fd6014_18
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 542892fd3fd6014_20	fill in the blank 542892fd3fd6014_21
	Treasury Stock	fill in the blank 542892fd3fd6014_23	fill in the blank 542892fd3fd6014_24

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
$fill in the blank 85622704805cfa6_1 Debit

c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?

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$\begin{array}{rcl} T r e a s u r y s t o c k & = & N u m b e r o f s h a r e s \times P e r s h a r e v a l u e \\ = & 5, 100 \times $ 64 \\ = & $ 326, 400 \end{array}$

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