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 Total . Shareholders Equity 2,214 840 360 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 Retained $10 par $1 par Capital Earnings Balance at January 1, 2021 1,794 Sale of preferred shares 829 Sale of common shares Cash dividend, preferred Cash dividend, common (14) Net income Balance at December 31, 2021 2,888 Retirement of shares (30) Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a dividend (10) Net income (2) 49 (2) (14) 310 .397 20 460 55LN

Answer 1

Date	Accounts title & Explanation	Debit	Credit
Year – 2021	Cash	$840
	Preferred stock		$20
	Paid in capital excess of par, preferred stock		$820
	(For recording issue of preferred stock)
	Cash	$49
	Common stock		$7
	Paid in capital excess of par, common stock		$42
	(For recording issue of common stock)
	Retained earnings	$2
	Cash dividend payable, preferred stock		$2
	(For recording dividend)
	Cash dividend payable, preferred stock	$2
	Cash		$2
	(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	$310
	Retained earnings		$310
	(For recording retained earnings)
Year – 2022	Common stock	$5
	Additional paid in capital	$30
	Retained earnings	$12
	Cash		$47
	(For recording retirement & cancellation of shares)
	Retained earnings	$2
	Cash dividend payable, preferred stock		$2
	(For recording dividend)
	Cash dividend payable, preferred stock	$2
	Cash		$2
	(For recording cash dividend paid to preferred stock)
	Retained earnings	$18
	Cash dividend payable, common stock		$18
	(For recording dividend)
	Cash dividend payable, common stock	$18
	Cash		$18
	(For recording cash dividend paid to common stock)
	Income summary	$460
	Retained earnings		$460
	(For recording retained earnings)
	Paid in capital excess of par, preferred stock	$10
	Preferred stock		$10
	(For recording effect of split)
Year 2023	Retained earnings	$47
	Common stock		$6
	Paid in capital excess of par, common stock		$41
	(For recording common stock dividend)
	Retained earnings	$2
	Cash dividend payable, preferred stock		$2
	(For recording dividend)
	Cash dividend payable, preferred stock	$2
	Cash		$2
	(For recording cash dividend paid to preferred stock)
	Retained earnings
	Cash dividend payable, common stock	$20
	(For recording dividend)		$20
	Cash dividend payable, common stock
	Cash	$20
	(For recording cash dividend paid to common stock)		$20
	Income summary	$502
	Retained earnings		$502
	(For recording retained earnings)