Earth Star Diamonds Inc. began a potentially lucrative mining operation on October 1, 2023. 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 $5.80 each.
	10		Issued for cash, 60,000 shares of the common shares at $4.60 per share.
	15		Earth star purchased land for $196,000, paying cash of $71,000 and borrowing the balance from the bank (to be repaid in two years).
	20		20,000 preferred shares were issued today for total cash proceeds of $114,800.
	24		In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,980 were declared on the common shares today, payable November 15, 2023.
	31		Revenues of $1,000,000 were earned during the month; all cash. Expenses, all cash, totalling $350,000 were incurred in October. Close the Income Summary and dividend accounts.

Part B Required: Based on the transactions in Part A, prepare the balance sheet as at October 31, 2023.

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