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 60 540 1,838 2,438 Sale of preferred shares 20 860 880 Sale of common shares 6 54 60 Cash dividend, preferred (2 ) (2 ) Cash dividend, common (16 ) (16 ) Net income 330 330 Balance at December 31, 2018 20 66 1,454 2,150 3,690 Retirement of shares (3 ) (27 ) (26 ) (56 ) Cash dividend, preferred (2 ) (2 ) Cash dividend, common (20 ) (20 ) 3-for-2 split effected in the form of a dividend 10 (10 ) Net income 480 480 Balance at December 31, 2019 30 63 1,417 2,582 4,092 Common stock dividend 8 77 (85 ) Cash dividend, preferred (2 ) (2 ) Cash dividend, common (22 ) (22 ) Net income 522 522 Balance at December 31, 2020 30 71 1,494 2,995 4,590 Required: 1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. Prepare the journal entries that reflect those events and transactions. 2. Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2020 and 2019. Req 1: 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.

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 60 540 1,838 2,438 Sale of preferred shares 20 860 880 Sale of common shares 6 54 60 Cash dividend, preferred (2 ) (2 ) Cash dividend, common (16 ) (16 ) Net income 330 330 Balance at December 31, 2018 20 66 1,454 2,150 3,690 Retirement of shares (3 ) (27 ) (26 ) (56 ) Cash dividend, preferred (2 ) (2 ) Cash dividend, common (20 ) (20 ) 3-for-2 split effected in the form of a dividend 10 (10 ) Net income 480 480 Balance at December 31, 2019 30 63 1,417 2,582 4,092 Common stock dividend 8 77 (85 ) Cash dividend, preferred (2 ) (2 ) Cash dividend, common (22 ) (22 ) Net income 522 522 Balance at December 31, 2020 30 71 1,494 2,995 4,590 Required: 1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. Prepare the journal entries that reflect those events and transactions. 2. Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2020 and 2019. Req 1: 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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			60			540		1,838		2,438
Sale of preferred shares	20					860				880
Sale of common shares			6			54				60
Cash dividend, preferred								(2	)	(2	)
Cash dividend, common								(16	)	(16	)
Net income								330		330
Balance at December 31, 2018	20		66			1,454		2,150		3,690
Retirement of shares			(3	)		(27	)	(26	)	(56	)
Cash dividend, preferred								(2	)	(2	)
Cash dividend, common								(20	)	(20	)
3-for-2 split effected in the form of a dividend	10					(10	)
Net income								480		480
Balance at December 31, 2019	30		63			1,417		2,582		4,092
Common stock dividend			8			77		(85	)
Cash dividend, preferred								(2	)	(2	)
Cash dividend, common								(22	)	(22	)
Net income								522		522
Balance at December 31, 2020	30		71			1,494		2,995		4,590

Required:
1. Infer from the statements the events and transactions that affected Anaconda International Corporation’s shareholders’ equity during 2018, 2019, and 2020. Prepare the journal entries that reflect those events and transactions.
2. Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2020 and 2019.

Req 1:

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.

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