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 70 490 1,882 2,442 Sale of preferred shares 30 930 960 Sale of common shares 8 56 64 Cash dividend, preferred (3 ) (3 ) Cash dividend, common (18 ) (18 ) Net income 350 350 Balance at December 31, 2021 30 78 1,476 2,211 3,795 Retirement of shares (3 ) (21 ) (22 ) (46 ) Cash dividend, preferred (3 ) (3 ) Cash dividend, common (22 ) (22 ) 3-for-2 split effected in the form of a dividend 15 (15 ) Net income 500 500 Balance at December 31, 2022 45 75 1,440 2,664 4,224 Common stock dividend 5 40 (45 ) Cash dividend, preferred (3 ) (3 ) Cash dividend, common (24 ) (24 ) Net income 542 542 Balance at December 31, 2023 45 80 1,480 3,134 4,739 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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