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 $77 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $85 per share. The remaining 1,600 shares were sold at $74 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 fill in the blank 10c23a02efe4076_2 fill in the blank 10c23a02efe4076_3 Cash fill in the blank 10c23a02efe4076_5 fill in the blank 10c23a02efe4076_6 Sept. 22 Cash fill in the blank 10c23a02efe4076_8 fill in the blank 10c23a02efe4076_9 Treasury Stock fill in the blank 10c23a02efe4076_11 fill in the blank 10c23a02efe4076_12 Paid-In Capital from Sale of Treasury Stock fill in the blank 10c23a02efe4076_14 fill in the blank 10c23a02efe4076_15 Nov. 23 Cash fill in the blank 10c23a02efe4076_17 fill in the blank 10c23a02efe4076_18 Paid-In Capital from Sale of Treasury Stock fill in the blank 10c23a02efe4076_20 fill in the blank 10c23a02efe4076_21 Treasury Stock fill in the blank 10c23a02efe4076_23 fill in the blank 10c23a02efe4076_24 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $fill in the blank af6db20bff9fff5_1 Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $77 per share. On September 22, Mystic Lake sold 3,600 of the reacquired shares at $85 per share. The remaining 1,600 shares were sold at $74 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	fill in the blank 10c23a02efe4076_2	fill in the blank 10c23a02efe4076_3
	Cash	fill in the blank 10c23a02efe4076_5	fill in the blank 10c23a02efe4076_6
Sept. 22	Cash	fill in the blank 10c23a02efe4076_8	fill in the blank 10c23a02efe4076_9
	Treasury Stock	fill in the blank 10c23a02efe4076_11	fill in the blank 10c23a02efe4076_12
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 10c23a02efe4076_14	fill in the blank 10c23a02efe4076_15
Nov. 23	Cash	fill in the blank 10c23a02efe4076_17	fill in the blank 10c23a02efe4076_18
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 10c23a02efe4076_20	fill in the blank 10c23a02efe4076_21
	Treasury Stock	fill in the blank 10c23a02efe4076_23	fill in the blank 10c23a02efe4076_24

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
$fill in the blank af6db20bff9fff5_1 Credit

c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?
All of these reasons.

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