Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 39,500 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 30,100 of the reacquired shares at $51 per share. The remaining 9,400 shares were sold at $41 per share on November 23.

Required:

	a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
	b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
	c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?

a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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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?

c. For what reasons might Mystic Lake Inc. have purchased the treasury stock? Check all that apply.

For reissuance to employees as a bonus according to stock purchase agreements.

To support the market price of the stock.

The company wishes to increase the par value of its stock.

To provide shares for resale to employees.

The company wishes to receive more of its own dividends.