Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders equity 1 2. 3 4. 5. Southwestern Exposure's articles of incorporation authorize the issuance of 1,090,000 common shares, and the issuance of 195,000 preferred shares, which pay an annual dividend of $2.40 per share. A total of 260,000 common shares were issued for $4 a share, A total of 20,000 preferred shares were issued for 512 per share. The full annual dividend on the preferred shares was declared. The dividend on the preferred shares was paid A dividend of 50.10 per share was declared on the common shares but was not yet paldi The company had net income of $157,000 for the year (Assume sales of $832,000 and total operating expenses of $675.000) The dividends on the common shares were pald. The closing entry for the dividends declared accounts was prepared 6. 7 8 9 the shave transactions, including the closing entries for net income and dividends declared Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account and explanation Debit Credit 1. No Entry 0 No Entry 2. Cash 1040000 Common Shares 1040000 3. Cash 240000 Preferred Shares 240000 4. Dividends Declared Dividends DeclaredPreferred Shares 5. Cash Dividends Declared - Preferred Shares Dividende 7. Sales Revenue Income Summary (To close revenue account.) Income Summary Operating Expenses (To close expense account.) Income Summary Retained Earnings (To close net income:) 8. Cash Dividends Declared. Common Shares 9. Retained Earnings Dividends DeclaredPreferred Shares Dividends Declared Common Shares Prepare the shareholders' equity section of the statement of financial position as at December 31, 2020. Shareholders' Equity, December 31, 2020