Compare financing alternatiiB (L09-1 ) Penny Arcades: Inc., is trying to decide between the following two alternatives to finance its new S19 million gaming center in the coming year. They forecast they will earn in operatmg income for the year and began the with shares of stock prior to financing the gaming center. The financing altematives to raise the funds are: a. Issue S 19 million of 7% bonds at face amount or b. Issue 1 million additional shares of common stock for S 19 per share Required: 1. Assuming bonds or shares of stock to finance the center are issued at the beginning of the year: complete the income statement for each for the year. (Enter your answers in dollars not in millions. Round vour "Earnin s er Share" to 2 decimal laces.) Bon perating mcome Sto est expense (bonds only) ome before tax ome tax expense (35%) et income umber of shares per share Record installment notes (L09-2) On January 1: 201 S: Tropical Paradise borrows S48:000 by agreeing to a five-year note with the bank. The unds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $905.82 are due at the end of each month Mith the first installment due on January 31: 2018. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round our final answers to 2 decimal laces.)