Waterway Ltd. showed the following information on its September 30, 2024 year-end financial statements: Preferred Shares,...

  

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Waterway Ltd. showed the following information on its September 30, 2024 year-end financial statements: Preferred Shares, $8 cumulative, 500,000 shares authorized, 200,000 shares issued and outstanding Common Shares, no par value, unlimited shares authorized, 564,000 shares issued and outstanding $3,200,000 $4,512,000 The following transactions occurred, in the order given, during 2025: (a) (b) (c) (d) (e) (f) October 10, 2024: Received subscriptions and down payments for 81,000 common shares at $9 per share. The subscription contract calls for 40% of the subscription to be paid upon receipt, and the remaining 60% to be paid on November 30, 2024. In the event of default on the subscriptions, the company will retain the down payment. November 30, 2024: Received payment for 76,300 of the subscribed shares; the remaining 4,700 defaulted. Issued the share certificates for the appropriate number of shares. January 1, 2025: Issued 10,400 preferred shares at $40 per share. April 5, 2025: Repurchased and cancelled 20,500 common shares at a cost of $7 per share. August 15, 2025: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $3 per share dividend for common shares. Both dividends are to be paid on October 1 to shareholders of record on September 30, 2025. If the preferred shares had a $32 par value, what journal entry would be required for the January 1, 2025 transaction in part (c)? Prepare the journal entries to record the above transactions for Waterway Ltd. for 2025. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Waterway Ltd. showed the following information on its September 30, 2024 year-end financial statements: Preferred Shares, $8 cumulative, 500,000 shares authorized, 200,000 shares issued and outstanding Common Shares, no par value, unlimited shares authorized, 564,000 shares issued and outstanding $3,200,000 $4,512,000 The following transactions occurred, in the order given, during 2025: (a) (b) (c) (d) (e) (f) October 10, 2024: Received subscriptions and down payments for 81,000 common shares at $9 per share. The subscription contract calls for 40% of the subscription to be paid upon receipt, and the remaining 60% to be paid on November 30, 2024. In the event of default on the subscriptions, the company will retain the down payment. November 30, 2024: Received payment for 76,300 of the subscribed shares; the remaining 4,700 defaulted. Issued the share certificates for the appropriate number of shares. January 1, 2025: Issued 10,400 preferred shares at $40 per share. April 5, 2025: Repurchased and cancelled 20,500 common shares at a cost of $7 per share. August 15, 2025: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $3 per share dividend for common shares. Both dividends are to be paid on October 1 to shareholders of record on September 30, 2025. If the preferred shares had a $32 par value, what journal entry would be required for the January 1, 2025 transaction in part (c)? Prepare the journal entries to record the above transactions for Waterway Ltd. for 2025. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Answer rating: 100% (QA)

Lets start by preparing the journal entries for each of the transactions that occurred during 2025 f... View the full answer