Dafoe Companys comparative balance sheet at January 31, 2019, and 2018, reports the following in millions.

2019 2018

Total assets: $76 $49

Total liabilities: $22 $17

The following are three situations related to Dafoe Companys issuance of stock and declaration and payment of dividends during the year ended January 31, 2019.

For each situation, use the accounting equation and what you know from the chapter aboutstockholders' equity, common stock, and retained earnings to calculate the amount of

Dafoe's

net income or net loss during the year ended January 31,

2019.

1. Dafoe issued $7 million of stock the year ended January 31, 2019.

2. Dafoe issued no stock but declared dividends of $5 million.

3. Dafoe issued $10 million of stock and declared dividends of $100 million.

Begin by reviewing the labels for the change in stockholders equity and then enter the amounts for each month.

Situation 1 Situation 2 Situation 3

Total Stockholders equity, January 31, 2018

Add: Issuance of Stock

Net Income

Less: Dividends Declared

Net Loss

Total stockholder equity, January 31, 2019