(Learning Objective 2, 3, 4: Explaining the changes in stockholders’ equity) Apollo Corporation reported the following stockholders’ equity data (all dollars in millions except par value per share):
|
December 31, |
||
|
20X2 |
20X1 |
|
|
Preferred stock |
$ 604 |
$ 740 |
|
Common stock, $1 par value |
900 |
891 |
|
Additional paid in capital |
1,490 |
1,468 |
|
Retained earnings |
20,661 |
19,108 |
|
Treasury stock, common |
(2,758) |
(2,643) |
Apollo earned net income of $2,960 during 20X2. For each account except Retained Earnings, 1 transaction explains the change from the December 31, 20X1, balance to the December 31, 20X2, balance. Two transactions affected Retained Earnings. Give a full explanation, including the dollar amount, for the change in each account.