Question 14 Waterway Limited has the following information available regarding its share capital at December 31, 2016: Preferred shares, $3.50 cumulative, 18,200 shares issued $910,000 Preferred shares, $4.50 noncumulative, 11,000 shares issued 550,000 Common shares, 281,000 shares issued 1,405,000 The shares were issued when the corporation began operations on January 1, 2015. No dividends were declared during 2015 and 2016. On October 30, 2017, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2017, to the shareholders of record on November 16, 2017. How much will be paid to each class of shares? Cumulative preferred shares $ Noncumulative preferred shares $ Common sharesPrepare journal entries on the appropriate dates for the 2017 dividends. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Oct. 30 Cash Dividends - Preferred 240,600 Cash Dividends - Common 140,500 Dividends Payable 381,100 Nov. 16 + No Entry No Entry Dec. 1 + Dividends Payable 381,100 Cash 381,100Assume instead that the maximum cash dividend the company can pay in 2017 is $171,100. Determine the dividends in arrears, if any, at December 31, 2017. Dividends in arrears 17,110