Question 3 Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders' equity: 1. Southwestern Exposure's articles of incorporation authorize the issuance of 1,000,000 common shares, and the issuance of 100,000 preferred shares, which pay an annual dividend of $2.40 per share. 2. A total of 220,000 common shares were issued for $4 a share. 3. A total of 10,000 preferred shares were issued for $12 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.10 per share was declared on the common shares but was not yet paid. 7. The company had net income of $130,000 for the year. (Assume sales of $630,000 and total operating expenses of $500,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the dividends declared accounts was prepared.