On January 1, Year 1, Janell Company's Common Stock account balance was $20,000. On April 1, Year 1, Janell paid $12,000 cash to purchase some of its own stock. Janell resold this stock on October 1, Year 1, for $14,500. What is the effect on the company's cash and stockholders' equity from both the April 1 purchase and the October 1 resale of the stock?

On January 1, Year 1, Janell Company's Common Stock account balance was $20,000. On April 1, Year 1, Janell paid $12,000 cash to purchase some of its own stock Janell respld this stock on October 1, Year 1, for $14,500. What is the effect on the company's cash and stockholders' equity from both the April 1 purchase and the October 1 resale of the stock