Can someone help me to solve this accounting problem? Thank you!
Question 2 On January 1, 2016, Pharoah issued 10-year, $100,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Pharoah $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 2017. (Ignore all tax effects.) Prepare the journal entry Pharoah would have made on January 1, 2016, to record the issuance of the bonds. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31, 2016 SHOW LIST OF ACCOUNTS Pharoah's net income in 2017 was $25,000 and was $22,000 in 2016. Compute basic and diluted earnings per share for Pharoah for 2017 and 2016. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2016 Basic earning per share $ Diluted earning per share $ SHOW LIST OF ACCOUNTSAssume that 75% of the holders of Pharoah's convertible bonds convert their bonds to stock on June 30, 2018, when Pharoah's stock is trading at $32 per share. Pharoah pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jun. 30, 2018 SHOW LIST OF ACCOUNTSList Of Accounts Question 2 Bond Conversion Expense Bonds Payable Cash Compensation Expense Common Stock Convertible Preferred Stock Debt Conversion Expense Discount on Bonds Payable Income Summary Incremental Cash Insurance Expense Interest Expense Interest Payable Liability under Stock Appreciation Plan Memo Entry No Entry Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Paid-in Capital-Expired Stock Options Paid-in Capital-Stock Options Paid-in Capital-Stock Warrants Premium on Bonds Payable Preferred Stock Retained Earnings Unamortized Bond Issue Costs Unearned Compensation