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 1,090,000 common shares, and the issuance of 245,000 preferred shares, which pay an annual dividend of $1.50 per share. 2. A total of 250,000 common shares were issued for $6 a share. 3. A total of 25,000 preferred shares were issued for $15 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. 7. A dividend of $0.10 per share was declared on the common shares but was not yet paid. The company had net income of $152,000 for the year. (Assume sales of $822,000 and total operating expenses of $670,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the dividends declared accounts was prepared.