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 1,050,000 common shares, and the issuance of 175,000 preferred shares, which pay an annual dividend of $1.90 per share.
2.		A total of 240,000 common shares were issued for $6 a share.
3.		A total of 25,000 preferred shares were issued for $13 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 $158,000 for the year. (Assume sales of $858,000 and total operating expenses of $700,000.)
8.		The dividends on the common shares were paid.
9.		The closing entry for the dividends declared accounts was prepared.

(a)

Partially correct answer icon

Your answer is partially correct.

Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared. (Credit account titles 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 0 for the amounts.)

No.	Account and explanation	Debit	Credit
1.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
2.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
3.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
4.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
5.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
6.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
7.	Enter an account title to close revenue account.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to close revenue account.	Enter a debit amount.	Enter a credit amount.
	(To close revenue account.)
	Enter an account title to close expense account.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to close expense account.	Enter a debit amount.	Enter a credit amount.
	(To close expense account.)
	Enter an account title to close net income.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to close net income.	Enter a debit amount.	Enter a credit amount.
	(To close net income.)
8.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
9.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.