Waterway Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 1,900 shares issued) Common stock, $5 par (109,500 shares authorized, 21,900 shares issued) Additional paid-in capital Retained earnings Total $190,000 109,500 117,000 453,000 $869,500 During 2025, Waterway took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2024 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2024. 2. Purchased 1,600 shares of its own outstanding common stock for $37 per share. Waterway uses the cost method. 3. Reissued 600 treasury shares for land valued at $27,400. 4. Issued 480 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. 6. Issued the stock dividend. 7. Declared the annual 2025 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2026. (a) Your answer is partially correct. Prepare journal entries to record the transactions described above. (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
Waterway Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 1,900 shares issued) Common stock, $5 par (109,500 shares authorized, 21,900 shares issued) Additional paid-in capital Retained earnings Total $190,000 109,500 117,000 453,000 $869,500 During 2025, Waterway took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2024 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2024. 2. Purchased 1,600 shares of its own outstanding common stock for $37 per share. Waterway uses the cost method. 3. Reissued 600 treasury shares for land valued at $27,400. 4. Issued 480 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. 6. Issued the stock dividend. 7. Declared the annual 2025 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2026. (a) Your answer is partially correct. Prepare journal entries to record the transactions described above. (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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Waterway Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 1,900 shares issued)
Common stock, $5 par (109,500 shares authorized, 21,900 shares issued)
Additional paid-in capital
Retained earnings
Total
$190,000
109,500
117,000
453,000
$869,500
During 2025, Waterway took part in the following transactions concerning stockholders' equity.
1.
Paid the annual 2024 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These
dividends had been declared on December 31, 2024.
2.
Purchased 1,600 shares of its own outstanding common stock for $37 per share. Waterway uses the cost method.
3.
Reissued 600 treasury shares for land valued at $27,400.
4.
Issued 480 shares of preferred stock at $105 per share.
5.
6.
Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share.
Issued the stock dividend.
7.
Declared the annual 2025 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These
dividends are payable in 2026.
(a)
Your answer is partially correct.
Prepare journal entries to record the transactions described above. (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
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