Houle Ltd. was incorporated on January 15, 2020, and was authorized to issue 1,800,000 common shares and an unlimited amount of 12% fixed dividend, cumulative, retractable, non-participating, non-voting preferred shares. During the remainder of 2020, the company entered into the following transactions. 1. 2. 3. Houle issued 520,000 common shares in exchange for $8,528,000 in cash. A total of 210,000 preferred shares were issued for $11 a share. A dividend was declared on the preferred shares. A $0.25 dividend per share was declared on the common shares. The dividend on the preferred shares was paid. The dividend on the common shares was paid. The company had net income of $1.940,000 for the year. The closing entries for net income and the dividends declared accounts were prepared. 5. 6. 7. No. Account Titles and Explanation Debit Credit 1. Cash 8,528,000 Common Shares 8,528,000 2. Cash Preferred Shares 3. 4. 5. 1 6. 7. (To close income summary) (To close dividends declared)