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. Part A Required: Prepare journal entries for each of the transactions listed. Oct. 1 Issued fur cash, 1,000 shares of the preferred shares at $4.50 each. 10 Issued for cash, 51,000 shares of the common stock at $3.70 per share. 15 Earth star purchased land for $187,000, paying cash of $66,500 and borrowing the balance from the bank (to be repaid in two years). 20 15,500 preferred shares were issued today for total cash proceeds of $87,575. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,890 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $910,000 were earned during the month; all cash. Expenses, all cash, totalling $305,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list 1 Record the issue of preferred shares. 2 Record the issue of common shares. 3 Record the purchase of land in exchange for cash and a note. 4 Record the issue of preferred shares for cash. 5 Record the dividends declared on common and preferred shares. 6 Record the revenues earned. 7 Record the expenses incurred. Note: journal entry has been entered Record entry Credit Clear entry View general journal Current assets Property, plant and equipment: Total assets Current liabilities Non current liabilities Total liabilities Contributed Capital Total contributed capital EARTH STAR DIAMONDS INC. Balance Sheet October 31, 2020 Assets $ 0 Liabilities Equity $ 0 < Prev 7 of 7 Next $ 0 Equity es Contributed Capital Total contributed capital Total equity Total liabilities and equity $ 0 0 $ 0