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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 $4.50 each. 10 Issued for cash, 47,000 shares of the common stock at $3.30 per share. Earth star purchased land for $183,000, paying cash of $64,500 and borrowing the balance from the bank (to be repaid in two years).. 15 20 13,500 preferred shares were issued today for total cash proceeds of $75,735. 24 In addition to the declaration of the annual dividend on the preferred. shares, dividends of $26, 850 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $870, 000 were earned during the month; all cash. Expenses, all cash, totalling $285,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list

Required: Based on the transactions in Part A, prepare the balance sheet as at October 31, 2020. Current assets: Property, plant and equipment: Total assets Current liabilities Non current liabilities: October 31, 2020 Assets Liabilities 10 ET Next > S 0