eBookShow Me HowCalculator

Treasury StockTransactions

Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 40,000 shares of itscommon stockat $44 per share. On September 22, Mystic Lake sold 30,000 of the reacquired shares at $50 per share. The remaining 10,000 shares were sold at $43 per share on November 23.

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

July 9

Treasury Stock

Cash

Sept. 22

Cash

Treasury Stock

Paid-In Capital from Sale of Treasury Stock

Nov. 23

Cash

Paid-In Capital from Sale of Treasury Stock

Treasury Stock

Feedback

b.What is the balance inPaid-In Capitalfrom Sale of Treasury Stock on December 31 of the current year?

$Credit