Comparative statements of shareholders equity for Anaconda International Corporation were reported as follows for the...
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Accounting
Comparative statements of shareholders equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2018, 2019, and 2020.
ANACONDA INTERNATIONAL CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2018, 2019, and 2020 ($ in millions)
Preferred Stock $10 par
Common Stock $1 par
Additional Paid-In Capital
Retained Earnings
Total Shareholders' Equity
Balance at January 1, 2018
50
450
1,596
2,096
Sale of preferred shares
10
420
430
Sale of common shares
7
63
70
Cash dividend, preferred
(1
)
(1
)
Cash dividend, common
(12
)
(12
)
Net income
220
220
Balance at December 31, 2018
10
57
933
1,803
2,803
Retirement of shares
(4
)
(36
)
(14
)
(54
)
Cash dividend, preferred
(1
)
(1
)
Cash dividend, common
(16
)
(16
)
3-for-2 split effected in the form of a dividend
5
(5
)
Net income
370
370
Balance at December 31, 2019
15
53
892
2,142
3,102
Common stock dividend
7
68
(75
)
Cash dividend, preferred
(1
)
(1
)
Cash dividend, common
(18
)
(18
)
Net income
402
402
Balance at December 31, 2020
15
60
960
2,450
3,485
Required:1. Infer from the statements the events and transactions that affected Anaconda International Corporations shareholders equity during 2018, 2019, and 2020. Prepare the journal entries that reflect those events and transactions. Record sale of preferred stock.
Record sale of common stock.
Record declaration of cash dividend for preferred shares.
Record payment of cash dividend for preferred shares.
Record declaration of cash dividend for common shares.
Record payment of cash dividend for common shares.
Record transfer of net income to retained earnings.
Record the repurchase of shares for retirement. (Assume weighted average method).
Record declaration of cash dividend for preferred shares.
Record payment of cash dividend for preferred shares.
Record declaration of cash dividend for common shares
Record payment of cash dividend for common shares.
Record the stock split for preferred shares effected in the form of a dividend.
Record transfer of net income to retained earnings.
Record distribution of common stock dividend.
Record declaration of cash dividend for preferred shares.
Record payment of cash dividend for preferred shares.
Record declaration of cash dividend for common shares.
Record payment of cash dividend for common shares.
Record transfer of net income to retained earnings.
2. Prepare the shareholders equity section of Anacondas comparative balance sheets at December 31, 2020 and 2019.
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