1. On January 1, 2019, Martinez issued 10-year, $100,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Martinez $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.

) A) Prepare the journal entry Martinez would have made on January 1, 2019, to record the issuance of the bonds. January 1, 2019

Cash $100,000

Bonds Payable $100,000 (To record the insurance of bonds

B) Martinezs net income in 2020 was $25,000 and was $22,000 in 2019. Compute basic and diluted earnings per share for Martinez for 2020 and 2019.