1.) Frey Co. is considering the following alternative financing plans:

	Plan 1		Plan 2
Issue 10% bonds (at face value)	$1,240,000		$620,000
Issue preferred $1 stock, $10 par			1,030,000
Issue common stock, $5 par	1,240,000		830,000

Income tax is estimated at 40% of income.

Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $372,000.

Enter answers in dollars and cents, rounding to two decimal places.

Plan 1	$ Earnings per share on common stock
Plan 2	$ Earnings per share on common stock

2.)

On January 1, the first day of the fiscal year, a company issues a $600,000, 4%, 10-year bond that pays semiannual interest of $12,000 ($600,000 4% year), receiving cash of $600,000.

(a) Journalize the entry to record the issuance of the bonds.

(b) Journalize the entry to record the first interest payment on June 30.

(c) Journalize the entry to record the payment of the principal on the maturity date.