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Reporting Stockholders Equity Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet. There are 50,000 shares of common stock authorized, and 2,000 shares have been reacquired. Common Stock, $80 par $2,800,000 Paid-In Capital from Sale of Treasury Stock 56,000 Paid-In Capital in Excess of Par-Common Stock 840,000 Retained Earnings 1,512,000 Treasury Stock 37,000 Stockholders' Equity Pald-in Capital: Common Stock, $80 Par (50,000 Shares Authorized, 2,000 Shares Issued) Excess of Issue Price Over Par Paid-in capital, common stock From Sale of Treasury Stock | JIIT Total Pald-in Capital Retained Earnings Total Treasury Stock Total Stockholders' Equity Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 6,800 shares of its common stock at $59 per share. On September 22, Mystic Lake sold 4,800 of the reacquired shares at $66 per share. The remaining 2,000 shares were sold at $56 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 Cash Sept. 22 Treasury Stock Pald-In Capital from Sale of Treasury Stock IN INI In Capital from Sale of Treasury Stack The repurchase of shares, known as treasury stock, is typically recorded using the cost 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 treasury stock and the price the shares are The repurchase of shares, known as treasury stock, is typically recorded using the cost 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 treasury stock and the price the shares are resold for at a later date. Learning Objective 5. b. 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? All of these reasons My Work Consider what entries might have affected the value of the paid in capital account. Review why companies may repurchase their stock. Learning Objective 5 Partially correct

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