Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. ANACONDA INTERNATIONAL CORPORATIONStatements of Shareholders' EquityFor the Years Ended Dec. 31, 2021, 2022, and 2023($ in millions) Preferred Stock$10 par Common Stock$1 par AdditionalPaid-In Capital Retained Earnings TotalShareholders' EquityBalance at January 1, 2021 65 520 1,860 2,445 Sale of preferred shares30 900 930 Sale of common shares 7 56 63 Cash dividend, preferred (3) (3)Cash dividend, common (17) (17)Net income 340 340 Balance at December 31, 202130 72 1,476 2,180 3,758 Retirement of shares (2) (16) (24) (42)Cash dividend, preferred (3) (3)Cash dividend, common (21) (21)3-for-2 split effected in theform of a dividend15 (15) Net income 490 490 Balance at December 31, 202245 70 1,445 2,622 4,182 Common stock dividend 4 37 (41) Cash dividend, preferred (3) (3)Cash dividend, common (23) (23)Net income 532 532 Balance at December 31, 202345 74 1,482 3,087 4,688 Required:1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2021, 2022, and 2023. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.)2. Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2023 and 2022.

Stock Holder Equity: It is the total amount of capital provided by its shareholders to a company…

Answered: 1. Infer from the statements the events…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 12E

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Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023.

ANACONDA INTERNATIONAL CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2021, 2022, and 2023 ($ in millions)
	Preferred Stock $10 par	Common Stock $1 par		Additional Paid-In Capital	Retained Earnings		Total Shareholders' Equity
Balance at January 1, 2021			65			520		1,860		2,445
Sale of preferred shares	30					900				930
Sale of common shares			7			56				63
Cash dividend, preferred								(3	)	(3	)
Cash dividend, common								(17	)	(17	)
Net income								340		340
Balance at December 31, 2021	30		72			1,476		2,180		3,758
Retirement of shares			(2	)		(16	)	(24	)	(42	)
Cash dividend, preferred								(3	)	(3	)
Cash dividend, common								(21	)	(21	)
3-for-2 split effected in the form of a dividend	15					(15	)
Net income								490		490
Balance at December 31, 2022	45		70			1,445		2,622		4,182
Common stock dividend			4			37		(41	)
Cash dividend, preferred								(3	)	(3	)
Cash dividend, common								(23	)	(23	)
Net income								532		532
Balance at December 31, 2023	45		74			1,482		3,087		4,688

Required:
1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2021, 2022, and 2023. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.)
2. Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2023 and 2022.

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