Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 39,300 shares of its common stock The stock outstanding when a corporation has issued only one class of stock.  at $42 per share. On September 22, Mystic Lake sold 30,100 of the reacquired shares at $49 per share. The remaining 9,200 shares were sold at $41 per share on November 23. Required:   a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.   b. What is the balance in Paid-In Capital Capital contributed to a corporation by the stockholders and others.  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?         none X Chart of Accounts     CHART OF ACCOUNTS Mystic Lake Inc. General Ledger   ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment   LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable   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   REVENUE 410 Sales 610 Interest Revenue   EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense         none X Journal     a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10   JOURNAL ACCOUNTING EQUATION JOURNAL ACCOUNTING EQUATION     DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1                 2                 3                 4                 5                 6                 7                 8                   . 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? Check all that apply.   To support the market price of the stock.   To provide shares for resale to employees.   The company wishes to increase the par value of its stock.   The company wishes to receive more of its own dividends.   For reissuance to employees as a bonus according to stock purchase agreements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 39,300 shares of its common stock
The stock outstanding when a corporation has issued only one class of stock.
 at $42 per share. On September 22, Mystic Lake sold 30,100 of the reacquired shares at $49 per share. The remaining 9,200 shares were sold at $41 per share on November 23.
Required:
  a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
  b. What is the balance in Paid-In Capital
Capital contributed to a corporation by the stockholders and others.
 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?
 
 
 
 
none
X
Chart of Accounts
 
 
CHART OF ACCOUNTS
Mystic Lake Inc.
General Ledger
  ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
193 Equipment
194 Accumulated Depreciation-Equipment
  LIABILITIES
210 Accounts Payable
221 Notes Payable
226 Interest Payable
231 Cash Dividends Payable
241 Salaries Payable
261 Mortgage Note Payable
  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
  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Goods Sold
515 Credit Card Expense
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Selling Expenses
534 Rent Expense
535 Insurance Expense
536 Office Supplies Expense
537 Organizational Expenses
562 Depreciation Expense-Equipment
590 Miscellaneous Expense
710 Interest Expense
 
 
 
 
none
X
Journal
 
 
a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
 
JOURNAL
ACCOUNTING EQUATION
JOURNAL
ACCOUNTING EQUATION
 
  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
7
 
 
 
 
 
 
 
 
8
 
 
 
 
 
 
 
 
 
. 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? Check all that apply.
 
To support the market price of the stock.
 
To provide shares for resale to employees.
 
The company wishes to increase the par value of its stock.
 
The company wishes to receive more of its own dividends.
 
For reissuance to employees as a bonus according to stock purchase agreements.
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