E1-18A. (Learning Objectives 2, 3: Using the accounting equation; evaluating business operations) Spicer, Inc.’s comparative Balance Sheet at January 31, 20X7 and 20X6, reports

(in millions):

Requirements Three independent scenarios about Spicer’s issuance of shares and payment of dividends during the year ended January 31, 20X7, are provided below. For each scenario, use the accounting equation and the statement of changes in equity to compute the amount of Spicer’s net income or net loss during the year ended January 31, 20X7.
1. Spicer issued $8 million of shares and paid no dividends.
2. Spicer issued no shares but paid dividends of $8 million.
3. Spicer issued $2 million of shares and paid dividends of $6 million.

20X7 20X6 Total assets $37 $30 Total liabilities 8 6