Burchette, Inc.s comparative balance sheet at January 31, 2015, and 2014, reports the following (in millions): Requirements

Question:

Burchette, Inc.€™s comparative at January 31, 2015, and 2014, reports the following (in millions):

Burchette, Inc.€™s comparative balance sheet at January 31, 2015, and

Requirements
Tree situations about Burchette€™s issuance of stock and declaration and payment of dividends during the year ended January 31, 2015, follow. For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Burchette€™s net income or net loss during the year ended January 31, 2015.
1. Burchette issued $6 million of stock and declared no dividends.
2. Burchette issued no stock but declared dividends of $5 million.
3. Burchette issued $31 million of stock and declared dividends of $3million.

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...