A company issues $750,000 par value bonds at 8.0 percent interest paid semiannually at 93. The bond period is for 10 years. Show the entry to set up the bond and the entry to record the interest payment using the straightline method.

2. At December 31, 2017, Emley Company had 1,200,000 shares of common stock outstanding. On October 1, 2018, an additional 400,000 shares of common stock were issued. In addition, Emley had $14,000,000 of 6% convertible bonds outstanding at December 31, 2017, which are convertible into 800,000 shares of common stock. No bonds were converted into common stock in 2018. The net income for the year ended December 31, 2018, was $5,250,000. Assuming the income tax rate was 30%, what should be the diluted earnings per share for the year ended December 31, 2018, rounded to the nearest penny?