Great City Builders, Inc., balance sheet data at May 31, 2012, and June 30, 2012, follow: Requirement

Question:

Great City Builders, Inc., data at May 31, 2012, and June 30, 2012, follow:

Junc 30, 2012 May 31, 2012 Total assets $177,000 122,000 $213,000 144,000 Total liabilitics

Requirement
1. Following are three situations about stockholders€™ investments and dividends of the business during June. For each situation, compute the amount of net income or net loss during June 2012.
a. The company issued $6,000 of common stock and paid no dividends.
b. The company issued no common stock. It paid dividends of $10,000.
c. The company issued $18,000 of common stock and paid dividends of$20,000.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...