Comparative statements of shareholders' equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2016, 20 17, and 2018.

ANACONDA INTERNATIONAL CORPORATION

Statements of Shareholders' Equity

For the Years Ended Dec. 31, 2016, 2017, and 2018 ($ in millions)

	Preferred Stock	Common Stock	Additional Paid-In	Retained	Total Shareholders'
	$10 par	$1 par	Capital	Earnings	Equity
Balance at January 1, 2016		S5	495	1,878	2.428
Sale of preferred shares	10		470		480
Sale of common shares		7	63		70
Cash dividend, preferred				(1)	(1)
Cash dividend , common				(16)	(16)
Net income				290	290
Balance at December 31, 2016	10	62	1,028	2.151	3,251
Retirement of shares		(3)	(27)	(20)	(50)
Cash dividend, preferred				(1)	( 1)
Cash dividend, common				(20)	(20)
3-for-2 split effected in
the form of a dividend	5		(5)
N et income				380	380
Balance at December 31, 2017	15	59	996	2.490	3,560
Common stock dividend		6	59	(65)
Cash dividend, preferred				(1)	( 1)
Cash dividend , common				(22)	(22)
Net income				412	412
Balance at December 31, 2018	15	65	1,055	2,814	3,949

Required:

I. Infer from the statements the events and transactions that affected Anaconda International Corporation 's shareholders' equity during 2016, 2017, and 2018. 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 , 2018 and 2017.