Great City BuilderGreat City Builder 's balance sheet data at May 31, 2018 , and June 30, 2018 , follow:May 31, 2018 June 30, 2018Total Assets $155000 202000Total Liabilities $144000 77000Begin by identifying the accounting equation and the formula to calculate the change in the stockholders' equity during a periodFor each of the following situations that occurred in June, 2018 with regard to common stock and dividends of a corporation, compute the amount of net income or net loss during June 2018. a. The company issued $7,500 of common stock and paid no dividends. b. The company issued no common stock. It paid cash dividends of $9,000. c. The company issued $ 12 comma 000$12,000 of common stock and paid cash dividends of $8,000.

Lets recall some basic accounting equations:

Total Assets = Total Liabilities + Total Stockholders' Equity

Ending Stockholders' Equity = Beginning Stockholders' Equity + Common Stock Issued + Net Income or Net Loss - Dividends

May 31, 2018:

Total Stockholders' Equity = Total Assets - Total Liabilities

Total Stockholders' Equity = $155,000 - $144,000 = $11,000

June 30, 2018:

Total Stockholders' Equity = Total Assets - Total Liabilities

Total Stockholders' Equity = $202,000 - $77,000 = $125,000

Case A:

Ending Stockholders' Equity = Beginning Stockholders' Equity + Common Stock Issued + Net Income or Net Loss - Dividends

$125,000 = $11,000 + $7,500 + Net Income / Loss - $0

Net Income or Net Loss = $106,500

Case B:

Ending Stockholders' Equity = Beginning Stockholders' Equity + Common Stock Issued + Net Income or Net Loss - Dividends

$125,000 = $11,000 + $0 + Net Income or Net Loss - $9,000

Net Income or Net Loss = $123,000

Case C:

Ending Stockholders' Equity = Beginning Stockholders' Equity + Common Stock Issued + Net Income or Net Loss - Dividends

$125,000 = $11,000 + $12,000 + Net Income or Net Loss - $8,000

Net Income or Net Loss = $110,000