Question $6$ of $6$

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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 $1,100,000$ common shares, and the issuance of $115,000$ preferred shares, which pay an annual dividend of $$2\mathrm{.}00$ per share.

A total of $280,000$ common shares were issued for $$4$ a share.

A total of $15,000$ preferred shares were issued for $$13$ per share.

The full annual dividend on the preferred shares was declared.

The dividend on the preferred shares was paid.

A dividend of $$0\mathrm{.}10$ per share was declared on the common shares but was not yet paid.

The company had net income of $$161,000$ for the year. $($Assume sales of $$751,000$ and total operating expenses of $$590,000.)$

The dividends on the common shares were paid.

The closing entry for the dividends declared accounts was prepared.