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Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,100 shares of its

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Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,100 shares of its common stock at $69 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $75 per share. The remaining 1,500 shares were sold at $66 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. Effect of Stock Split Willey's Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey's Grill & Restaurant, which had 75,000 shares of common stock outstanding, declared a 4-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had market price of $144 per share before the stock split, what would be an approximate market price per share after the split? per share

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