AP11-6 (Equity transactions) Southern Exposure Ltd. begins operations on January 2, 2016. During the year, the following transactions affect shareholders' equity: I.Southern Exposure's articles of incorporation authorizes the issuance of 1 million common shares, and the issuance of 100,000 preferred shares, which pay an annual dividend of $2 per share. 2.A total of 240,000 common shares are issued for $5 a share. 3.A total of 15,000 preferred shares are issued for $14 per share. 4. The full annual dividend on the preferred shares is declared. 5. The dividend on the preferred shares is paid. 6.A dividend of $0.10 per share is declared on the common shares but is not yet paid. 7. The company has net income of $150,000 for the year. (Assume sales of $750,000 and total operating expenses of $600,000.) 8. The dividends on the common shares are paid. 9. The closing entry for the dividends declared accounts is prepared. Required: a. Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared mentioned in items 3 through 6 above.