b) Increase Cash by $3,500; decrease Treasury Stocks by $3,000; and increase PIC Treasury Stocks by $500. 18. Based on the event "A" when the common stocks were issued, determine how this transaction will affect the 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. (4 points) 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: (4 points) 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: (4 points) 20. Based on the event "C" when the treasury stocks were purchased back, determine how this transaction will af the Financial Statements. a) Increase Cash and decrease Treasury Stocks by $3,500. The cash flow will be affected by $3,500 inflow. 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