Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,500 shares of its common stock at $79 per share. On September 22, Mystic Lake sold 3,800 of the reacquired shares at $85 per share. The remaining 1,700 shares were sold at $75 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 b9b83a01bfe7f9b_2	fill in the blank b9b83a01bfe7f9b_3
	Cash	fill in the blank b9b83a01bfe7f9b_5	fill in the blank b9b83a01bfe7f9b_6
Sept. 22	Cash	fill in the blank b9b83a01bfe7f9b_8	fill in the blank b9b83a01bfe7f9b_9
	Treasury Stock	fill in the blank b9b83a01bfe7f9b_11	fill in the blank b9b83a01bfe7f9b_12
	Paid-In Capital from Sale of Treasury Stock	fill in the blank b9b83a01bfe7f9b_14	fill in the blank b9b83a01bfe7f9b_15
Nov. 23	Cash	fill in the blank b9b83a01bfe7f9b_17	fill in the blank b9b83a01bfe7f9b_18
	Paid-In Capital from Sale of Treasury Stock	fill in the blank b9b83a01bfe7f9b_20	fill in the blank b9b83a01bfe7f9b_21
	Treasury Stock	fill in the blank b9b83a01bfe7f9b_23	fill in the blank b9b83a01bfe7f9b_24

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The repurchase of shares, known as treasury stock, is typically recorded using the cost method. When the treasury stock is resold, what is the company receiving? What is it giving up? Keep in mind the price paid to buy the treasury stock and the price the shares are resold for at a later date.

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 6223c40aafb6f90_1 Credit

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