Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 6,900 shares of its common stock at $88 per share. On September 22, Mystic Lake sold 4,800 of the reacquired shares at $99 per share. The remaining 2,100 shares were sold at $84 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 Feedback Check My Work The repurchase of shares, known as treasury stock, is typically recorded using the cost method. When the treasury stock is resold, what is the company receiving? What is it giving up? Keep in mind the price paid to buy the treasury stock and the price the shares are resold for at a later date. 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? All of these reasons. Feedback Check My Work b. Consider what entries might have affected the value of the paid-in capital account.