Earth Star Diamonds Inc. began a potentially lucrative mining

operation on October $1,2020.$ It is authorized to issue $100,000$

shares of $$0\mathrm{.}60$ cumulative preferred shares and $500,000$ common

shares. The company uses the cash dividends account to keep track

of all dividends declared.Oct. $1$ Issued for cash, $1,000$ shares of the preferred shares at

$$4\mathrm{.}20$ each. $10$ Issued for cash, $44,000$ shares of the common stock

at $$3\mathrm{.}00$ per share. $15$ Earth star purchased land for $$180,000,$

paying cash of $$63,000$ and borrowing the balance from the bank $($to

be repaid in two years$).2012,000$ preferred shares were issued

today for total cash proceeds of $$66,960.24$ In addition to the

declaration of the annual dividend on the preferred shares,

dividends of $$26,820$ were declared on the common shares today,

payable November $15,2020.31$ Revenues of $$840,000$ were earned

during the month; all cash. Expenses, all cash, totalling $$270,000$

were incurred in October. Close the Income Summary and dividend

accounts.