Store Front, Inc.'s, comparative balance sheet at January 31, 2009, and 2008, reports (in millions): Three situations

Question:

Store Front, Inc.'s, comparative at January 31, 2009, and 2008, reports (in millions):

Store Front, Inc.'s, comparative balance sheet at January 31, 2009,

Three situations about Store Front's issuance of stock and payment of dividends during the year ended January 31, 2009, follow. For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Store Front's net income or net loss during the year ended January 31, 2009.
1. Store Front issued $1 million of stock and paid no dividends.
2. Store Front issued no stock but paid dividends of $2 million.
3. Store Front issued $11 million of stock and paid dividends of $1 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...