Question

Calaulator Print Item Show Me How eBook Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lakke reacquired 6.500 chares of its common stock at $90 per share. On September 22. Mystic Lake sold 4,600 of the reacquired shares at $97 per share. The remaining 1.900 shares were sold at $86 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. Treasury Stock July 9 Cash Sept. 22 Cash Treasury Stock Paid-In Capital from Sale ofT reasury Stock Nov. 23 Cash Paid-In Capital from Sale of Treasery Stock Treasury Stock Freqac The repurchase of shares, known as treesury stock is typically recorded using the coat 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 treesury stock and the price the shares are resold for at a later date. Learning Objective 5. b. What is the balance in Daid-In Capitel from Sale of Treasury Stock on December 31 of the current year? Credit v C. For what reasons might Mystic Lake tnc. have purchased the treasury stock? All of these reapons,

Answer 1

Answer

Date		Dr. $	Cr. $
9-Jul	Treasury Stock (6,500 * $90)	585,000.00
	Cash		585,000.00
22-Sep	Cash (4,600 * $97)	446,200.00
	Treasury Stock (4,600 * $90)		414,000.00
	Paid in Capital (4,600 * $7)		32,200.00
23-Nov	Cash (1,900 * $86)	163,400.00
	Paid in Capital (1,900 * $4)	7,600.00
	Treasury Stock (1,900 * $90)		171,000.00
B	Paid in Capital = 24,600
C	Interest Expense	188,055.75
	Disc on Bonds Payable [(3,300,000 - 3,023,331)/12 Semi Periods)		23,055.75
	Cash		165,000.00

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