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 Oet 1 Issued for cash, 1,000 shares of the preferred shares as $5.50 each 10 Issued for cash, 57,000 shares of the common stock at $4.90 per share. 15 Earth star purchased land for $199.000, paying cash of $69,500 and borrowing the balance from the bank ito be repaid in two years) 2018,500 preferred shares were issued today for total cash proceeds of $105, 635. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26, 950 were declared on the common shares today. payable November 15, 2020 al Revenue of $970,000 were earned during the month; all cash. Expenses, all cash totalling $325,000 were incurred in October. Close the Income Summary and dividend accounts. Answer is not complete. No Date General Journal Debit Credit 1 October 01, 2020 Cash > 4,400 * Preferred dividends payable 4,400 2 October 10, 2020 Cash 147.200 Common shares 147.200 3 October 15, 2020 Land 1,820,000 nnn Common shares 147 200 3 October 15, 2020 Land 1.820,000 Cash Notes payable 84.000 118.000 4 October 20, 2020 Cash 72,800 Preferred shares 72.800 5 28,840 October 24, 2020 Retained earnings Common dividends payable Retained earnings Preferred dividends payable 26,840 * 8,400 8.400 October 31, 2020 Cash 800.000 Revenues x 800,000 October 31, 2020 Income summary 280,000 Cash % 280.000 8 October 31, 2020 Income summary Retained earnings 9 October 31, 2020 Retained earnings Common dividends payable Based on the transactions in Part A prepare the balance sheet as at October 31, 2020. x Answer is not complete. EARTH STAR DIAMONDS INC Balance Sheet October 31, 2020 Assets Cument assets Cash > $ 740,400 * Property, plant and equipment: Land C 182,000 Total assets 922.400 Liabilities Current liabilities Dividends payable s 36.240 Non current liabilities Long term note payable 118.000 * $ 153.240 Total liabilities Equity Contributed Capital Preferred ahares $0.00 cumulative, 100.000 shares authorized, 18 500 shares issued and outstanding $ 77.200 Common shares. 500.000 shares authorized, 57.000 shares issued and outstanding 147 200 oo Total contributed capital s 224.400 October 31, 2020 Assets Current assets: Cash * $ 740,400 Property, plant and equipment Land 182,000 Total assets 5 922,400 Liabilities Current liabilities Dividends payable s 35.240 * Non current liabilities: Long term note payable 118,000 3 $ 153,240 Total liabilities Equity Contributed Capital Preferred shares. 50.00 cumulative, 100,000 shares authorized. 19.500 shares issued and outstanding S 77 200 Common shares, 500 000 shares authorized, 57.000 shares issued and outstanding 147 200 8 s 224,400 Total contributed onpital Total equity Total liabilities and equity 224.400 $ 377,040