Comparative statements of shareholders\' equity for Anaconda International Corpo
ID: 2558639 • Letter: C
Question
Comparative statements of shareholders' equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2018, 2019, and 2020 ANACONDA INTERNATIONAL CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2018, 2019, and 2020 ($ in millions) Additional Paid-Irn Capital 280 400 Total Preferred Stock $10 par ommon Stock $1 par 40 Retained Earnings 1,552 Shareholders Equity 1,872 410 40 Balance at January 1, 2018 Sale of preferred shares Sale of common shares 10 Cash dividend, preferred Cash dividend, Net income Balance at December 31, 2018 (10) 200 (10) 200 common 10 45 715 1,741 2,511 (14) (34) Retirement of shares Cash dividend, preferred Cash dividend, (14) (14) common 3-for-2 split effected in the form of a dividend Net income Balance at December 31, 2019 15 43 696 40 2,058 2,812 Common stock dividend Cash dividend, preferred Cash dividend, common Net income (45) (16) 382 (16) 382 Balance at December 31, 2020 15 48 736 2,378 3,177 Required 1. Infer from the statements the events and transactions that affected Anaconda International Corporation's shareholders' equity during 2018, 2019, and 2020. 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, 2020 and 2019Explanation / Answer
(1).
Date
Accounts title & Explanation
Debit
Credit
Year – 2018
Cash
$410
Preferred stock
$10
Paid in capital excess of par, preferred stock
$400
(For recording issue of preferred stock)
Cash
$40
Common stock
$5
Paid in capital excess of par, common stock
$35
(For recording issue of common stock)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
$10
Cash dividend payable, common stock
$10
(For recording dividend)
Cash dividend payable, common stock
$10
Cash
$10
(For recording cash dividend paid to common stock)
Income summary
$200
Retained earnings
$200
(For recording retained earnings)
Year – 2019
Common stock
$2
Additional paid in capital
$14
Retained earnings
$18
Cash
$34
(For recording retirement & cancellation of shares)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
$14
Cash dividend payable, common stock
$14
(For recording dividend)
Cash dividend payable, common stock
$14
Cash
$14
(For recording cash dividend paid to common stock)
Income summary
$350
Retained earnings
$350
(For recording retained earnings)
Paid in capital excess of par, preferred stock
$5
Preferred stock
$5
(For recording effect of split)
Year 2020
Retained earnings
$45
Common stock
$5
Paid in capital excess of par, common stock
$40
(For recording common stock dividend)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
Cash dividend payable, common stock
$16
(For recording dividend)
$16
Cash dividend payable, common stock
Cash
$16
(For recording cash dividend paid to common stock)
$16
Income summary
$382
Retained earnings
$382
(For recording retained earnings)
(2).
ANACONDA INTERNATIONAL CORPORATION
Shareholders’ equity section
2020
2019
Shareholders’ equity;
Preferred stock
$15
$15
Common stock
$48
$43
Additional paid in capital
$736
$696
Retained earnings
$2378
$2058
Total shareholders’ equity
$3177
$2812
Date
Accounts title & Explanation
Debit
Credit
Year – 2018
Cash
$410
Preferred stock
$10
Paid in capital excess of par, preferred stock
$400
(For recording issue of preferred stock)
Cash
$40
Common stock
$5
Paid in capital excess of par, common stock
$35
(For recording issue of common stock)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
$10
Cash dividend payable, common stock
$10
(For recording dividend)
Cash dividend payable, common stock
$10
Cash
$10
(For recording cash dividend paid to common stock)
Income summary
$200
Retained earnings
$200
(For recording retained earnings)
Year – 2019
Common stock
$2
Additional paid in capital
$14
Retained earnings
$18
Cash
$34
(For recording retirement & cancellation of shares)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
$14
Cash dividend payable, common stock
$14
(For recording dividend)
Cash dividend payable, common stock
$14
Cash
$14
(For recording cash dividend paid to common stock)
Income summary
$350
Retained earnings
$350
(For recording retained earnings)
Paid in capital excess of par, preferred stock
$5
Preferred stock
$5
(For recording effect of split)
Year 2020
Retained earnings
$45
Common stock
$5
Paid in capital excess of par, common stock
$40
(For recording common stock dividend)
Retained earnings
$1
Cash dividend payable, preferred stock
$1
(For recording dividend)
Cash dividend payable, preferred stock
$1
Cash
$1
(For recording cash dividend paid to preferred stock)
Retained earnings
Cash dividend payable, common stock
$16
(For recording dividend)
$16
Cash dividend payable, common stock
Cash
$16
(For recording cash dividend paid to common stock)
$16
Income summary
$382
Retained earnings
$382
(For recording retained earnings)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.