Question
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
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 55 330 1,618 2,003 Sale of preferred shares 10 430 440 Sale of common shares 8 48 56 Cash dividend, preferred (1 ) (1 ) Cash dividend, common (13 ) (13 ) Net income 230 230 Balance at December 31, 2021 10 63 808 1,834 2,715 Retirement of shares (5 ) (30 ) (12 ) (47 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (17 ) (17 ) 3-for-2 split effected in the form of a dividend 5 (5 ) Net income 380 380 Balance at December 31, 2022 15 58 773 2,184 3,030 Common stock dividend 8 53 (61 ) Cash dividend, preferred (1 ) (1 ) Cash dividend, common (19 ) (19 ) Net income 422 422 Balance at December 31, 2023 15 66 826 2,525 3,432 Required: 1. Infer from the statements the events and transactions that affected Anaconda International Corporations 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 Anacondas comparative balance sheets at December 31, 2023 and 2022
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