JKL company has the following transactions during the year xxx1. A) Issued 40,000 common stocks, $20 par value for $25 per share. B) Purchased 400 treasury stocks (common), for $30 per share. C) Purchased back 100 treasury stocks, for $35 per share. 18. Based on the event A when the common stocks were issued, determine how this transaction will affect the Financial Statements.

a) Increase Cash and increase Common Stocks by $1,000,000. The cash flow will be affected by $1,000,000 inflow. b) Increase Cash by $1,000,000; increase Common Stocks by $800,000; and increase PIC in Excess of Par by $200,000. The cash flow will be affected by $1,000,000 inflow. c) Increase Cash by $1,000,000, increase Common Stocks by $200,000; and increase PIC in Excess of Par by $800,000. The cash flow will be affected by $1,000,000 inflow.

You MUST show your calculations:

19. Based on the event B when the treasury stocks were purchased, determine how this transaction will affect the Financial Statements.

a) Decrease Cash and increase Treasury Stocks by $12,000. The cash flow will be affected by $12,000 outflow. b) Decrease Cash and decrease Common Stocks by $12,000. The cash flow will be affected by $12,000 outflow. c) Decrease Cash and decrease Treasury Stocks by $12,000. The cash flow is affected by $12,000 outflow.

You MUST show your calculations: 20. Based on the event C when the treasury stocks were purchased back, determine how this transaction will affect the Financial Statements.

a) Increase Cash and decrease Treasury Stocks by $3,500. The cash flow will be affected by $3,500 inflow. b) Increase Cash by $3,500; decrease Treasury Stocks by $3,000; and increase PIC Treasury Stocks by $500. The cash flow will be affected by $3,500 inflow. c) Increase Cash and increase Retained Earnings by $3,500. Increase Revenues and increase Net Income by $3,500. The cash flow is affected by $3,500 inflow.

You MUST show your calculations: