Earth Star Diamonds Inc. began a potentially lucrative mining operation on October 1, 2020. It is...

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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 $5.70 each. 1e Issued for cash, 59,e00 shares of the common stock at $4.50 per share. 15 Earth star purchased land for $195, eee, paying cash of $70,50e and borrowing the balance from the bank (to be repaid in two years). 20 19,500 preferred shares were issued today for total cash proceeds of $111,735. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,970 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $990,e0e were earned during the month; all cash. Expenses, all cash, totalling $345,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list Part B Required: Based on the transactions in Part A, prepare the balance sheet as at October 31, 2020. EARTH STAR DIAMONDS INC. Balance Sheet October 31, 2020 Assets Current assets: Property, plant and equipment: Total assets Liabilities Current liabilities < Prev Next > 4 of 6 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 $5.70 each. 1e Issued for cash, 59,e00 shares of the common stock at $4.50 per share. 15 Earth star purchased land for $195, eee, paying cash of $70,50e and borrowing the balance from the bank (to be repaid in two years). 20 19,500 preferred shares were issued today for total cash proceeds of $111,735. 24 In addition to the declaration of the annual dividend on the preferred shares, dividends of $26,970 were declared on the common shares today, payable November 15, 2020. 31 Revenues of $990,e0e were earned during the month; all cash. Expenses, all cash, totalling $345,000 were incurred in October. Close the Income Summary and dividend accounts. View transaction list Part B Required: Based on the transactions in Part A, prepare the balance sheet as at October 31, 2020. EARTH STAR DIAMONDS INC. Balance Sheet October 31, 2020 Assets Current assets: Property, plant and equipment: Total assets Liabilities Current liabilities < Prev Next > 4 of 6