Accounting!!

Question 1:

Question 2:

An inexperienced accountant for Skysong, Inc. made the following entries. On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Ivanhoe Company is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 52,500 shares of common stock at $44 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 13%,10-year bonds at face value for $2,310,000. It is estimated that the company will earn $804,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 40% and has 92,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bond will be outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. \$2.66.)