Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 $1,600,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Plan 2 $800,000 1,330,000 1,070,000 1,600,000 Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $480,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Earnings per share on common stock $ Plan 2 $ Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $3,400,000, 9%, 10-year bond that pays semiannual interest of $153,000 ($3,400,000 x 9% x 42), receiving cash of $2,815,033. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%, 8-year bond that pays semiannual interest of $105,000 ($3,500,000 x 6% x 12), receiving cash of $3,288,352. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $3,800,000, 10%, 6-year bond that pays semiannual interest of $190,000 $3,800,000 x 10% x V2), receiving cash of $3,973,253. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable Premium Amortization dropdown On the first day of the fiscal year, a company issues a $3,800,000, 7%, 4-year bond that pays semiannual interest of $133,000 ($3,800,000 x 7% x 12), receiving cash of $4,217,551. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash Redemption of Bonds Payable A $970,000 bond issue on which there is an unamortized premium of $80,000 is redeemed for $774,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Cash