ecember 31, 2020. 3. How many preferred shares are available for issue at December 31, 2020? How many common shares are available for issue at December 31, 20207 Exercise 12-18 Share transactions, dividend distribution, balance sheet, closing LO2, 3, 4, 5, 6 CHECK FIGURES: B. Total assets = $989,400: Total equity = $892,920 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. Part A Required Prepare journal entries for each of the transactions listed. 84 CHAPTER 12 Organization and Operation of Corporations Oct. 1 10 15 20 24 Issued for cash, 1.000 shares of the preferred shares at $4,80 each. Issued for cash, 50,000 shares of the common stock at $3.60 per share. 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). 15,000 preferred shares were issued today for total cash proceeds of $84,600. In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,880 were declared on the common shares today, payable November 15, 2020. Revenues of $900,000 were earned during the month; all cash. Expenses, all cash, totalling $300,000 were incurred in October. Close the income Summary and dividend accounts