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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

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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 $4.20 each. 10 Issued for cash, 44,000 shares of the common stock at $3.00 per share. 15 Earth star purchased land for $150,000, paying cash of $63,000 and borrowing the balance from the bank (to be repaid in two years). 20 12,000 preferred shares were issued today for total cash proceeds of 566,960. 24 In addition to the declaration of the annual dividend on the preferred shares dividends of $26,820 were declared on the common shares today, payable November 15, 2020 31 Revenues of $840,000 were earned during the month all cash. Expenses, all cash, totalling $270,000 were incurred in October. Close the Incone Summary and dividend accounts. View transaction fist Journal entry worksheet Journal entry worksheet Record the issue of preferred shares. Note: Enter debits before credits. General Journal Debit Credit Date October 01 2020 Record entry Clear entry View general Journal 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 Liabilities Current liabilities Non current liabilities Total liabilities Farsta Liabilities Current liabilities Non current liabilities Total liabilities Equity Contributed Capital Total contributed capital Total equity Total liabilities and equity

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