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 joumal entries for each of the transactions listed Oct. 1 Issued for cash, 1,000 shares of the preferred shares at $4.80 each 10 Issued for cash, 50,000 shares of the comnon stock at $3.60 per share. 15 Earth star purchased land for $186,000, paying cash of $66,000 and borrowing the balance from the bank to be repaid in two years). 20 15.000 preferred shares were issued today for total cash proceeds of $84,600 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,888 were declared on the common shares today, payable November 15, 2020 31 Revenues of $900,000 were earned during the month all cath. Expenses, all cash totalling $300,000 were incurred in October. Close the Income Summary and dividend accounts 5 October 24, 2020 Cash dividends Preferred dividends payable Common dividends payable 880 280 C 6 October 31, 2020 Cash Revenues 900,000 900,000 7 > 300,000 October 31, 2020 Expenses Cash 300,000 > co 600,000 October 31, 2020 Income Summary Retained earnings 600,000 9 October 31, 2020 Retained earings Cash dividends EART SAROLAND Balinde Celober 21, 2020 Assets Current assets: Cash Property, plant and equipment: Land Total assets Liabilities Current liabilities Non Current liabilities: Long term note payable 0 Totat liabilities Equity Contributed capital Preferred shares. 30.50 cumulative. 100.000 shares authorized 10,000 shares issued and outstanding Common shares. 500 000 shares authorized 50.000 shares issued and outstanding 0 Total contributed capital 0 0 $ Total equity Total aplities and equity