Question 3 Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders' equity Southwestern Exposure's articles of incorporation authorize the issuance of 1,040,000 common shares, and the issuance of 260,000 preferred shares, which pay an annual dividend of $2.50 per share A total of 240,000 common shares were issued for $4 a share. A total of 10,000 preferred shares were issued for $14 per share. The full annual dividend on the preferred shares was declared. The dividend on the preferred shares was paid. A dividend of $0.10 per share was declared on the common shares but was not yet paid. The company had net income of $138,000 for the year. (Assume sales of $758,000 and total operating expenses of $620,000.) The dividends on the common shares were paid The closing entry for the dividends declared accounts was prepared 1. 2. 3. 4. 5. 6. 7. 8. 9