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Waterway Ltd. showed the following information on its September 30,2024 year-end financial statements: The following transactions occurred, in the order given, during 2025: (a) October

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Waterway Ltd. showed the following information on its September 30,2024 year-end financial statements: The following transactions occurred, in the order given, during 2025: (a) 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. (b) 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. (c) January 1, 2025: issued 10,400 preferred shares at $40 per share. (d) April 5. 2025: Repurchased and cancelled 20,500 common shares at a cost of \$7 per share. (e) 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 sharehoiders of record on September. 30,2025 . (f) If the preferred shares had a $32 par value, what joumal 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, es. 52.75 and final answers to 0 decimal ploces, es. 5.275. List all debit entries before credit entries. Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is reauired, seiect "No Entry' for the occount tities and enter 0 for the amounts) Question 3 of 3 120 (To record collection of down payment) (b) (Collection of share subscriptions receivable) (To record issuance of shares) (c) (d) (e) (e) (To record dividend declaration for preferred shares) (To record dividend declaration for common shares) (To record payment of dividends) (f) (To record payment of dividends) (f)

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