Answer and Explanation:
The impact of the transactions on the financial statement are as follows
1. In case of Sold 5,000 Shares:
The total Assets Increased by $250,000 i.e (5,000 × $25) as it increased the cash balance
Total Liabilities = No Change
Total Stockholders Equity = Increased by $250,000 as it increased the overall equity
Net Income = No Change.
2. In case of sale of 10,000 shares
The total Assets Increased by $370,000 i.e (10,000 × $37) as it increased the cash balance
Total Liabilities = No Change
Total Stockholders Equity = Increased by $370,000 as it increased the overall equity
Net Income = No Change.
3. In case of Purchased 20,000 of Treasury Stock
The Total Assets Decreased by $900,000 i.e (20,000 × $45) as it reduced the cash balance
Total Liabilities = No Change
Total Stockholders Equity Decreased by $900,000 as it decreased the overall equity
Net Income = No Change.
Note:
The number of shares given i.e 6,800, 11,800 and 21,800 are incorrect use the 5,000 shares, 10,000 shares and 20,000 shares and we did the computation accordingly
