rint 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 $5.60 each. 10 Issued for cash, 58,000 shares of the common stock at $4.40 per share. 15 Earth star purchased land for $194,000, paying cash of $70,000 and borrowing the balance from the bank (to be repaid in two years). 20 19,000 preferred shares were issued today for total cash proceeds of $108,680. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,960 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $980,000 were earned during the month; all cash. Expenses, all cash, totalling $340,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list Journal entry worksheet > 5 8 9 Record to close the cash dividends account, assuming Retained Earnings was not debited directly when dividends were declared. Note: Enter debits before credits. Date October 31, 2020 General Journal Debit Credit Revenues 980,000