Question
Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,200 shares of its
Treasury Stock Transactions
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,200 shares of its common stock at $53 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $59 per share. The remaining 1,600 shares were sold at $50 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
Sept. 22
Nov. 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?
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