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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 18
Treasury stock transactions
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 40,000 shares of its common stock at $44 per share. On September 22, Mystic Lake Inc. sold 30,000 of the reacquired shares at $50 per share. The remaining 10,000 shares were sold at $43 per share on November 23.
a. Journalize the transactions of July 9, September 22, and November 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 have purchased the treasury stock
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 40,000 shares of its common stock at $44 per share. On September 22, Mystic Lake Inc. sold 30,000 of the reacquired shares at $50 per share. The remaining 10,000 shares were sold at $43 per share on November 23.
a. Journalize the transactions of July 9, September 22, and November 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 have purchased the treasury stock
Explanation
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Treasury stock is stock that a company h...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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