Waterway Limited has the following information available regarding its share capital at December 31, 2020 Preferred shares, $3 50 cumulative, 21,700 shares issued $1,085,000 Preferred shares, $4 50 noncumulative, 15,000 shares issued 750,000 Common shares, 299,000 shares issued 1,495,000 The shares were issued when the corporation began operations on January 1, 2019 No dividends were declared during 2019 and 2020 On October 30, 2021, 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, 2021, to the shareholders of record on November 16, 2021 How much will be paid to each class of shares Cumulative preferred shares $enter a dollar amount Noncumulative preferred shares $enter a dollar amount Common shares $enter a dollar amount SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare journal entries on the appropriate dates for the 2021 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 enter an account title to record declaration of dividend on October 30 enter a debit amount enter a credit amount enter an account title to record declaration of dividend on October 30 enter a debit amount enter a credit amount enter an account title to record declaration of dividend on October 30 enter a debit amount enter a credit amount (To record declaration of dividend ) choose a transaction date Oct 30Nov 16Dec 1 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Oct 30Nov 16Dec 1 enter an account title to record payment of dividend enter a debit amount enter a credit amount enter an account title to record payment of dividend enter a debit amount enter a credit amount (To record payment of dividend ) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Assume instead that the maximum cash dividend the company can pay in 2021 is $207,350 Determine how much will be paid to the preferred shareholders and to the common shareholders Dividends paid to the preferred shareholders $enter a dollar amount Dividends paid to the common shareholders $enter a dollar amount

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Posted on Sep 10, 2024

Waterway Limited has the following information available regarding its share capital at December 31, 2020: Preferred shares, $3.50 cumulative, 21,700 shares issued $1,085,000 Preferred shares,

Waterway Limited has the following information available regarding its share capital at December 31, 2020:

Preferred shares, $3.50 cumulative, 21,700 shares issued		$1,085,000
Preferred shares, $4.50 noncumulative, 15,000 shares issued		750,000
Common shares, 299,000 shares issued		1,495,000

The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 30, 2021, 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, 2021, to the shareholders of record on November 16, 2021.

How much will be paid to each class of shares?

Cumulative preferred shares		$enter a dollar amount
Noncumulative preferred shares		$enter a dollar amount
Common shares		$enter a dollar amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare journal entries on the appropriate dates for the 2021 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	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	enter an account title to record declaration of dividend on October 30	enter a debit amount	enter a credit amount
	(To record declaration of dividend.)
choose a transaction date Oct. 30Nov. 16Dec. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Oct. 30Nov. 16Dec. 1	enter an account title to record payment of dividend	enter a debit amount	enter a credit amount
	enter an account title to record payment of dividend	enter a debit amount	enter a credit amount
	(To record payment of dividend.)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Assume instead that the maximum cash dividend the company can pay in 2021 is $207,350. Determine how much will be paid to the preferred shareholders and to the common shareholders.