Treasury stock transactions Obj. 5 Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remaining 15,000 shares were sold at

$40 per share on November 23.

a. Journalize the transactions of July 9, September 22, and November 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?

AppendixLO1