Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 39,800 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 32,100 of the reacquired shares at $50 per share. The remaining 7,700 shares were sold at $41 per share on November 23.
|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 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?|