Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mystic Lake inc. bottles and distributos spring water, On July 9 of the current year, Mysfoitake reacquired 41,500 shares of its commen stock at $42

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Mystic Lake inc. bottles and distributos spring water, On July 9 of the current year, Mysfoitake reacquired 41,500 shares of its commen stock at $42 per share, On September 22 , Mystic Lake sold 29,800 of the reacquired thaces at $55 per share. The remaining 11,700 shares were sold at $41 per share on November 23. Aequired: a. Journalize the transactions of July 9, September 22 , and November 23 . b. What is the cadance in Padtin Castal from Sale of Treasury stock an December 3t of the current yoar? c. For what reasons might Mystle Lake he. have purchased the treasury silock? Chart of Accounts CHART OF ACCOUNTS * Mystic Lake Inc. General Ledger REVENUE ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 inventory 145 Office Suppties 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payablo 410. Salos 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivary Expense 533 Seling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense. Check My Work Previous \begin{tabular}{ll} My 141 Inventory & 510 Cost of Gods Sold \\ 145 Office Supplies & 515 Credit Card Expense \\ 151 Prepaid Insurance & 520 Salaries Expense \\ 181 Land & 531 Advertising Expense \\ 193 Equipment & 532 Delivery Expense \\ 194 Accumulated Depreciation-Equipment & 533 Selling Expenses \\ LiABiLimes & 534 Rent Expense \\ 210 Accounts Payable & 535 Insurance Expense \\ 221 Notes Payable & 536 Oftice Supplies Expense \\ 226 Interest Payable & 537 Organizational Expenses \\ 231 Cash Dividends Payable & 562 Depreciation Expense-Equipment \\ 241 Salaries Payable & 590 Miscellaneous Expense \\ 261 Mortgape Note Payable: & 710 Interest Expenso \end{tabular} Instructions Chart of Accounts My 261 Mortgage Note Payable My EQUITY 236 Stock Dividends Distributable 311 Common Stock 312. Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends a. Journalize the fransactions of July 9, September 22, and November 23. 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. The company wishes to receive more of its own dividends. To provide shares for resale to employees. For reissuance to employees as a bonus according to stock purchase agreements. The company wishes to increase the par value of its stock. To support the market price of the stock. Mystic Lake inc. bottles and distributos spring water, On July 9 of the current year, Mysfoitake reacquired 41,500 shares of its commen stock at $42 per share, On September 22 , Mystic Lake sold 29,800 of the reacquired thaces at $55 per share. The remaining 11,700 shares were sold at $41 per share on November 23. Aequired: a. Journalize the transactions of July 9, September 22 , and November 23 . b. What is the cadance in Padtin Castal from Sale of Treasury stock an December 3t of the current yoar? c. For what reasons might Mystle Lake he. have purchased the treasury silock? Chart of Accounts CHART OF ACCOUNTS * Mystic Lake Inc. General Ledger REVENUE ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 inventory 145 Office Suppties 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payablo 410. Salos 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivary Expense 533 Seling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense. Check My Work Previous \begin{tabular}{ll} My 141 Inventory & 510 Cost of Gods Sold \\ 145 Office Supplies & 515 Credit Card Expense \\ 151 Prepaid Insurance & 520 Salaries Expense \\ 181 Land & 531 Advertising Expense \\ 193 Equipment & 532 Delivery Expense \\ 194 Accumulated Depreciation-Equipment & 533 Selling Expenses \\ LiABiLimes & 534 Rent Expense \\ 210 Accounts Payable & 535 Insurance Expense \\ 221 Notes Payable & 536 Oftice Supplies Expense \\ 226 Interest Payable & 537 Organizational Expenses \\ 231 Cash Dividends Payable & 562 Depreciation Expense-Equipment \\ 241 Salaries Payable & 590 Miscellaneous Expense \\ 261 Mortgape Note Payable: & 710 Interest Expenso \end{tabular} Instructions Chart of Accounts My 261 Mortgage Note Payable My EQUITY 236 Stock Dividends Distributable 311 Common Stock 312. Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends a. Journalize the fransactions of July 9, September 22, and November 23. 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. The company wishes to receive more of its own dividends. To provide shares for resale to employees. For reissuance to employees as a bonus according to stock purchase agreements. The company wishes to increase the par value of its stock. To support the market price of the stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditing Note Book Journal Notes Checklist Questions Observations Evidence Log

Authors: Just Visualize It, The Quality Guy

1st Edition

1726688402, 978-1726688406

More Books

Students also viewed these Accounting questions

Question

What is the specific purpose of an acceptable use policy?

Answered: 1 week ago