Franklin Company's comparative balance sheet at January 31, 2017, and 2016, reports the following (in millions): Requirements

Question:

Franklin Company's comparative at January 31, 2017, and 2016, reports the following (in millions):

Franklin Company's comparative balance sheet at January 31, 2017, and

Requirements
Three situations about Franklin Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2017, follow. For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Franklin's net income or net loss during the year ended January 31, 2017.
1. Franklin issued $12 million of stock and declared no dividends.
2. Franklin issued no stock but declared dividends of $12 million.
3. Franklin issued $88 million of stock and declared dividends of $30 million.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...