AP11-13A (Equity transactions) Southwestern Exposure Ltd. began operations on January 2 following transactions affected shareholders' equity: 2020. , During the year, the 1. Southwestern Exposure's articles of incorporation authorize the issuance of 1 million common shares, and the dividend of $2 per share issuance of 100,000 preferred shares, which pay an annua 2. A total of 240,000 common shares were issued for $5 a share. 3. A total of 15,000 preferred shares were issued for $14 per share. 4. The ruil annual diVidend on the prererred shares Was deciared 5. The dividend on the preferred shares was paid. 6. A dividend of S0.10 per share was declared on the common shares but was not yet paid 7. The company had net income of $150,000 for the year. (Assume sales of $750,000 and total operating expenses of $600,000.) 8. The dividends on the common shares were paid 9. The closing entry for the dividends declared accounts was prepared. Required a. Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared. b. Prepare the shareholders' equity section of the statement of financial position as at December 31,2020 Why would an investor choose to purchase the common shares rather than the preferred shares? Or vice versa? c