2 Earth Star Diamonds Inc. began a potentially lucrative mining operation on October 1, 2020. It is authorized to issue 100,000 shares of $0.60 cumulative preferred shares and 500.000 common shares. The company uses the cash dividends account to keep track of all dividends declared Port A Required: Prepare journal entries for each of the transactions listed Oct. 1 Issued for cash, 1,000 shares of the preferred shares at $5.40 each. 10 Issued for cash, 56,000 shares of the common stock at $4.20 per share. 15 Earth star purchased land for $192,000, paying cash of $69,000 and borrowing the balance from the bank (to be repaid in two years) 20 18,000 preferred shares were issued today for total cash proceeds of $102,600 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26.940 were declared on the con shares today, payable November 15, 2020 31 Revenues of 590,000 were earned during the month all cash. Expenses, all cash, totalling $330,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 October 01, 2020 Cash Preferred shares 2 October 10, 2020 Cash Common shares 3 October 15, 2020 Land Cash Notes payable 2 4 October 20, 2020 Cash Preferred shares 5 October 24, 2020 Cash dividends Common dividends payable Preferred dividends payable 6 October 31, 2020 Cash Revenues 7 October 31, 2020 Expenses Cash 8 October 31 2020 Income summary Retained earnings 9 October 31, 2020 Retained earnings Cash dividends Required: Based on the transactions in Part A prepare the balance sheet as at October 31, 2020, EARTH STAR DIAMONDS INC. Balance Sheet October 31, 2020 Assets Current assets Property, plant and equipment Total assets S 0 Liabilities Current liabilities Non current liabilities Total liabilities $ 0 Equity Contributed Capital Property plant and equipment $ 0 Total assets Liabilities Current liabilities Non current liabilities $ 0 Total liabilities Equity Contributed Capital Total contributed capital 0 Total equity Total liabdities and equity $ 0