Blue Corporation showed the following information on its financial statements on December $31,2024$:

Preferred Shares, no par value, $$6$ cumulative, $280,000$ shares authorized, $110,000$ shares issued and outstanding $$11,000,000$

Common Shares, no par value, unlimited shares authorized, $410,000$ shares issued and outstanding $$10,250,000$

The following transactions occurred, in the order given, during $2025$:

$($a$)$ April $15$: Received subscriptions and down payments for $100,000$ common shares at $$30$ per share. The subscription contracts call for $50\%$ of the subscription price to be paid upon receipt, and the remaining $50\%$ to be paid on June $30.$ In the event of default on the subscriptions, the company will retain the down payment.

$($b$)$ May $1$: Issued $110,000$ preferred shares at $$125$ per share.

$($c$)$ June $30$: Received payment for $90,000$ of the subscribed common shares; the remaining $10,000$ defaulted. Issued the share certificates for the appropriate number of shares.

$($d$)$ August $5$: Repurchased and cancelled $10,000$ common shares at a cost of $$20$ per share.

$($e$)$ September $15$: Declared dividends for preferred shares $($dividends had not been paid the previous year$).$ Also declared $$2\mathrm{.}00$ per share dividend for common shares. Both dividends are to be paid on November $1$ to shareholders of record on October $1.$

$($f$)$ If the preferred shares had a $$100$ par value, what would be the journal entry for the May $1$ issuance of preferred shares in part $($b$)?$

Prepare the journal entries to record the above transactions for Blue Corporation for $2025.($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 $0$ for the amounts. Round average share price to $2$ decimal places for intermediate calculations, e$.$g$.52\mathrm{.}75$ and final answers to $0$ decimal places, e$.$g$.5,275.)$ No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

$($To record sale of shares on a subscription basis$)$

$($To record collection of down payment$)$

$($b$)$

Preferred Shares

$($c$)$

$($To record receipt of cash for the final installment

on subscribed shares$)$

$($To record default on subscribed shares$)$

$($To record issuance of common shares for those

subscribed and paid for$)$

$($d$)$

Cash Dividends$-$Preferred

Dividends Payable

$($e$)$

Preferred Shares

$($To record dividend declared$)$

Common Shares Dividends Distributable

$($To record dividend paid$)$

$($f$)$

Preferred Shares