Comparative statements of shareholders’ equity for Anaconda International Corpor

Question

Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018.

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

     

Prepare the shareholders’ equity section of Anaconda’s comparative balance sheets at December 31, 2018 and 2017. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

     

Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018.

Explanation / Answer

1) Activities affecting Shareholders equity and thier Journal entries are

Values in Million Date Journal Debit Credit Year 2016 1 Sale of Preferred stock Cash 420           Preferred Stock 10           Additional Paid in capital 410 2 Sale of Common stock Cash 54           Common stock 6           Additional Paid in capital 48 3 Payment of Cash dividend Cash Dividend 12           Cash 12 Retained Earnings 12           Cash dividend 12 Year 2017 4 Retirement of share / cancellation of shares Common stock 3 Additional paid in capital 24 Retained earnings 16                Cash 43 5 Payment of Cash dividend Cash Dividend 16           Cash 16 Retained Earnings 16           Cash dividend 16 6 Split of stock as dividend Additional paid in capital 5           Preferred stock 5 Year 2018 7 Issue of Bonus Share as dividend Retained Earnings 59           Common stock 6           Additional Paid in capital 53 8 Payment of Cash dividend Cash Dividend 18           Cash 18 Retained Earnings 18           Cash dividend 18

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