Question
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
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.
R1:
1. Record sale of preferred stock.
2. Record sale of common stock.
3. Record declaration of cash dividend for preferred shares.
4. Record payment of cash dividend for preferred shares.
5. Record declaration of cash dividend for common shares.
6. Record payment of cash dividend for common shares.
7. Record transfer of net income to retained earnings.
8. Record the repurchase of shares for retirement. (Assume weighted average method).
9. Record declaration of cash dividend for preferred shares.
10. Record payment of cash dividend for preferred shares.
11. Record declaration of cash dividend for common shares
12. Record payment of cash dividend for common shares.
13. Record the stock split for preferred shares effected in the form of a dividend.
14. Record transfer of net income to retained earnings.
15. Record distribution of common stock dividend.
16. Record declaration of cash dividend for preferred shares.
17. Record payment of cash dividend for preferred shares.
18. Record declaration of cash dividend for common shares.
19. Record payment of cash dividend for common shares.
20. Record transfer of net income to retained earnings.
R2:
Comparative statements of shareholders' equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. Retained Earnings 1,552 Total Shareholders' Equity 1,872 410 40 (1) (1) ANACONDA INTERNATIONAL CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2021, 2022, and 2023 ($ in millions) Preferred Common Additional Stock Stock Paid-In $10 par $1 par Capital Balance at January 1, 2021 40 280 Sale of preferred shares 10 400 Sale of common shares 5 35 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 10 45 715 Retirement of shares (2) (14) Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a dividend (5) Net income Balance at December 31, 2022 15 43 696 Common stock dividend 5 40 Cash dividend, preferred Cash dividend, common Net income (10) 200 1,741 (18) (1) (14) (10) 200 2,511 (34) (1) (14) 01 350 2,812 350 2,058 (45) (1) (16) 382 2,378 (1) (16) 382 3,177 Balance at December 31, 2023 15 48 736 Required 1 Required 2 Prepare the shareholders' equity section of Anaconda's comparative balance sheets at December 31, 2023 and 2022. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) ANACONDA INTERNATIONAL CORPORATION Balance Sheets at December 31 2023 2022 Shareholders' Equity: Total shareholders' equity $ 0 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started