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 45 360 1,574 1,979 Sale of preferred shares 10 410 420 Sale of common shares 6 48 54 Cash dividend, preferred (1 ) (1 ) Cash dividend, common (11 ) (11 ) Net income 210 210 Balance at December 31, 2018 10 51 818 1,772 2,651 Retirement of shares (3 ) (24 ) (16 ) (43 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (15 ) (15 ) 3-for-2 split effected in the form of a dividend 5 (5 ) Net income 360 360 Balance at December 31, 2019 15 48 789 2,100 2,952 Common stock dividend 6 53 (59 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (17 ) (17 ) Net income 392 392 Balance at December 31, 2020 15 54 842 2,415 3,326 Required: 1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. 2. Prepare the journal entries that reflect those events and transactions.

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 45 360 1,574 1,979 Sale of preferred shares 10 410 420 Sale of common shares 6 48 54 Cash dividend, preferred (1 ) (1 ) Cash dividend, common (11 ) (11 ) Net income 210 210 Balance at December 31, 2018 10 51 818 1,772 2,651 Retirement of shares (3 ) (24 ) (16 ) (43 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (15 ) (15 ) 3-for-2 split effected in the form of a dividend 5 (5 ) Net income 360 360 Balance at December 31, 2019 15 48 789 2,100 2,952 Common stock dividend 6 53 (59 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (17 ) (17 ) Net income 392 392 Balance at December 31, 2020 15 54 842 2,415 3,326 Required: 1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. 2. Prepare the journal entries that reflect those events and transactions.

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, 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			45			360		1,574		1,979
Sale of preferred shares	10					410				420
Sale of common shares			6			48				54
Cash dividend, preferred								(1	)	(1	)
Cash dividend, common								(11	)	(11	)
Net income								210		210
Balance at December 31, 2018	10		51			818		1,772		2,651
Retirement of shares			(3	)		(24	)	(16	)	(43	)
Cash dividend, preferred								(1	)	(1	)
Cash dividend, common								(15	)	(15	)
3-for-2 split effected in the form of a dividend	5					(5	)
Net income								360		360
Balance at December 31, 2019	15		48			789		2,100		2,952
Common stock dividend			6			53		(59	)
Cash dividend, preferred								(1	)	(1	)
Cash dividend, common								(17	)	(17	)
Net income								392		392
Balance at December 31, 2020	15		54			842		2,415		3,326

Required:
1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. 2. Prepare the journal entries that reflect those events and transactions.

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