Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 4,800 shares of its common stock at $61 per share. On September 22, Mystic Lake sold 3,400 of the reacquired shares at $68 per share. The remaining 1,400 shares were sold at $58 per share on November 23.

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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	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury Stock	- Select -	- Select -
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury Stock	- Select -	- Select -
Sept. 22	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury Stock	- Select -	- Select -
	CashCommon StockPreferred StockRetained EarningsTreasury Stock	- Select -	- Select -
	CashCommon StockPaid-In Capital from Sale of Treasury StockPreferred StockRetained Earnings	- Select -	- Select -
Nov. 23	CashCommon StockPreferred StockRetained EarningsTreasury Stock	- Select -	- Select -
	Common StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockRetained Earnings	- Select -	- Select -
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury Stock	- Select -	- Select -

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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 3e7e96042fa5067_1

DebitCredit

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

To support the market price of the stock.To provide shares for resale to employees.For reissuance to employees as a bonus according to stock purchase agreements.None of these reasons.All of these reasons.