Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders equity:

1.		Southwestern Exposures articles of incorporation authorize the issuance of 1,060,000 common shares, and the issuance of 260,000 preferred shares, which pay an annual dividend of $2.20 per share.
2.		A total of 275,000 common shares were issued for $6 a share.
3.		A total of 15,000 preferred shares were issued for $14 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 $179,000 for the year. (Assume sales of $749,000 and total operating expenses of $570,000.)
8.		The dividends on the common shares were paid.
9.		The closing entry for the dividends declared accounts was prepared.

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.

No. Account and explanation Debit Credit 1. No Entry No Entry 2. Cash 1,650.000 Common Shares 1,650,000 3. Cash 210,000 Preferred Shares 210,000 4. Dividends Declared - Common Shares 572,000 Dividends Payable 572,000 5. Cash Dividends Payable 6. Dividends Declared - Common Shares 27,500 Dividends Payable 27,500 7. Sales Revenue 749,000 Income Summary 749,000 (To close revenue account.) Income Summary 570,000 Operating Expenses 570,000 (To close expense account.) Income Summary 179,000 Retained Earnings 179,000 (To close net income.) 8. Cash Dividends Payable 9. Retained Earnings Dividends Declared - Common Shares Shareholders' Equity, December 31, 2020 Share Capital Common Shares TA Preferred Shares Retained Earnings Total Shareholders' Equity $