E1-30B. (Learning Objectives 2, 3: Using the accounting equation; evaluating business operations) Sprinkler, Inc.’s comparative Balance Sheet at January 31, 20X7 and 20X6, reports

(in millions):

Requirements Three independent scenarios about Sprinkler’s issuance of shares and payment of dividends during the year ended January 31, 20X7, follow. For each situation, use the accounting equation and the statement of changes in equity to compute the amount of Sprinkler’s net income or net loss during the year ended January 31, 20X7.
1. Sprinkler issued €10 million of shares and paid no dividends.
2. Sprinkler issued no shares but paid dividends of €10 million.
3. Sprinkler issued €6 million of shares and paid dividends of €2 million.

Transcribed Image Text:

20X7 20X6 Total assets 39 20 Total liabilities 12 3