Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 4,900 shares of its common stock at $64 per share. On September 22, Mystic Lake sold 3,400 of the reacquired shares at $72 per share. The remaining 1,500 shares were sold at $60 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 StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash	Cash	Cash
Sept. 22	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockCash	Cash	Cash
	CashCommon StockPreferred StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockPreferred StockRetained EarningsPaid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock
Nov. 23	CashCommon StockPreferred StockRetained EarningsTreasury StockCash	Cash	Cash
	Common StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockRetained EarningsPaid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock	Paid-In Capital from Sale of Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock

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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 04f925034fa8048_1

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