Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 7,000 shares of its common stock at $80 per share. On September 22, Mystic Lake sold 4,900 of the reacquired shares at $90 per share. The remaining 2,100 shares were sold at $77 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
	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

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $ Credit

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