AP$11-14$A $($Equity transactions$)$ Bitter Sea Ltd$.$ began operations on January $2,2024.$ During the year, the following transactions affected shareholders$$ equity:

Bitter Sea$$s articles of incorporation authorize the issuance of $2\mathrm{.}5$ million common shares and the issuance of $250,000$ preferred shares, the latter of which pay an annual dividend of $$3$ per share.

A total of $300,000$ common shares were issued for $$6$ a share.

A total of $35,000$ preferred shares were issued for $$10$ per share.

The full annual dividend on the preferred shares was declared.

The dividend on the preferred shares was paid.

A dividend of $$0\mathrm{.}12$ per share was declared on the common shares but was not yet paid.

The company had net income of $$170,000$ for the year. $($Assume sales of $$500,000$ and total operating expenses of $$330,000.)$

The dividends on the common shares were paid.

The closing entry for the Dividends Declared account was prepared.

Required

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 $31,2024.$