Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 7,200 shares of its common stock at $53 per share. On September 22, Mystic Lake sold 5,000 of the reacquired shares at $59 per share. The remaining 2,200 shares were sold at $50 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 Sept. 22 Nov. 23 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 Mystic Lake Inc. have purchased the treasury stock?
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 7,200 shares of its common stock at $53 per share. On September 22, Mystic Lake sold 5,000 of the reacquired shares at $59 per share. The remaining 2,200 shares were sold at $50 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 Sept. 22 Nov. 23 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 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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Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 7,200 shares of its common stock at $53 per share. On September 22, Mystic Lake sold 5,000 of the reacquired shares at $59 per share. The remaining 2,200 shares were sold at $50 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 | |||
| Sept. 22 | |||
| Nov. 23 | |||
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 Mystic Lake Inc. have purchased the treasury stock?
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