Using the accounting equation Alan Light-works balance sheet data at May 31, 2016, and June 30, 2016, follow:
For each of the following situations with regard to common stock and dividends of a corporation, compute the amount of net income or net loss during June 2016.
a. The company issued $12,500 of common stock and paid no dividends.
b. The company issued no common stock. It paid cash dividends of $8,000.
c. The company issued $35,000 of common stock and paid cash dividends of $30,000.
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