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 for cash, 1,000 shares of the preferred shares at $4.10 each. 10 Issued for cash, 43,000 shares of the common stock at $2.90 per share. 15 Earth star purchased land for $179,000, paying cash of $62,506 and borrowing the balance from the bank (to be repaid in two years). 20 11,500 preferred shares were issued today for total cash proceeds of $64,055. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,810 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $830,000 were earned during the month; all cash. Expenses, all cash, totalling $265,000 were incurred in October. Close the Income Summary and dividend accounts. 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 Cash Property, plant and equipment Land Total assets Liabilities Current liabilities Dividends payable Non current liabilities: Total liabilities S 0 Fruit Saved Total assets Liabilities Current liabilities Dividends payable Non current liabilities: Total liabilities 69 0 Equity Contributed Capital Total contributed capital CA 0 Total equity Total liabilities and equity