Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,200 shares of its common stock at $77 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $85 per share. The remaining 1,600 shares were sold at $74 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 10c23a02efe4076_2 fill in the blank 10c23a02efe4076_3   Cash  fill in the blank 10c23a02efe4076_5 fill in the blank 10c23a02efe4076_6 Sept. 22 Cash  fill in the blank 10c23a02efe4076_8 fill in the blank 10c23a02efe4076_9   Treasury Stock  fill in the blank 10c23a02efe4076_11 fill in the blank 10c23a02efe4076_12   Paid-In Capital from Sale of Treasury Stock  fill in the blank 10c23a02efe4076_14 fill in the blank 10c23a02efe4076_15 Nov. 23 Cash  fill in the blank 10c23a02efe4076_17 fill in the blank 10c23a02efe4076_18   Paid-In Capital from Sale of Treasury Stock  fill in the blank 10c23a02efe4076_20 fill in the blank 10c23a02efe4076_21   Treasury Stock  fill in the blank 10c23a02efe4076_23 fill in the blank 10c23a02efe4076_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 af6db20bff9fff5_1 Credit

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...
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Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,200 shares of its common stock at $77 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $85 per share. The remaining 1,600 shares were sold at $74 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 10c23a02efe4076_2 fill in the blank 10c23a02efe4076_3
  Cash  fill in the blank 10c23a02efe4076_5 fill in the blank 10c23a02efe4076_6
Sept. 22 Cash  fill in the blank 10c23a02efe4076_8 fill in the blank 10c23a02efe4076_9
  Treasury Stock  fill in the blank 10c23a02efe4076_11 fill in the blank 10c23a02efe4076_12
  Paid-In Capital from Sale of Treasury Stock  fill in the blank 10c23a02efe4076_14 fill in the blank 10c23a02efe4076_15
Nov. 23 Cash  fill in the blank 10c23a02efe4076_17 fill in the blank 10c23a02efe4076_18
  Paid-In Capital from Sale of Treasury Stock  fill in the blank 10c23a02efe4076_20 fill in the blank 10c23a02efe4076_21
  Treasury Stock  fill in the blank 10c23a02efe4076_23 fill in the blank 10c23a02efe4076_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 af6db20bff9fff5_1 Credit 

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

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