Keep it Real, Inc. began operations on February 1 and issued 10,000 shares of $1 par common stock at $5 per share. On April 14, the company repurchased 500 shares of the previously issued shares for $6 per share. The company declared cash dividends of $0.50 per share on June 30. On July 31, the company paid the cash dividends declared on June 30. QUESTION 1: What is the effect of issuing the 10,000 shares on February 1? Increase cash by $ additional paid in capital by $40,000. Increase by $10,000. QUESTION 2: When the 500 shares are repurchased on April 14, which two accounts are affected? OOOOO cash and common stock cash and dividends cash and treasury stock cash and retained earnings additional paid in capital and common stock QUESTION 3: The amount of cash dividends paid to shareholders on July 31 is $