Southwestern Exposure Ltd. began operationson January 2, 2020. During the year, the following transactions affected shareholders' equity! 1. 2 2. 3. 4. Southwestern Exposure's articles of incorporation authorize the issuance of 1,000,000 common shares, and the issuanceof 235,000 preferred shares, which payan annual dividend of $2.00 per share. A total of 255,000 common shares were issued for $5 a share. A total of 15,000 preferred shares were issued for $13 per share. Thefullannual dividend on the preferred shares was declared. Thedividend on the preferred shares was paid. Adividend of $0.10 per share was declared on thecommon shares but was not yet paid. The company had net income of $137,000 for the year. (Assume sales of $677,000 and total operating expenses of $540,000.) The dividends on the common shares were paid. 5 5. 6. 7. 8. 9. Theclosing entry for thedividends declared accounts was prepared. No. Account and explanation Debit Credit 1. 2. 3. 5. 6. 7. (To close revenue account.) (To close expense account.) (To close net income.) 8. 9