Instructions: 1. I will not accept any typed solution and your answer must be in hand writing. 2. You need to submit your answer on the Assignment section of D2L before the deadline. 3. Your answer will be graded based on your efforts and not on being correct 4. Please use a black pen to write your answers. Question 1: For each of the unrelated transactions descrbed below, present the entry (ies) required to record the bond transactions 1. On August 1, 2021, Love Corporation called ts 10% convertible bonds for conversion. The $8,000,000 per bonds were converted into 320,000 shares of $20 par common stock. On August 1, there was $300,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore al interest payments 2. Fale, Inc. decides to issue convenible bonds instead of common stock. The company issues 10% convertible bonds, par 84,000,000, at 97. The investment banker indicates that the bonds had not been convertible they would have sold at 94 3. Equty Company issues $9,000,000 of bonds with a coupon rate of % To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1.000 bordo is estimated that the value of the bonds wthout the warrants $8,883.000 and the value of the warrants is $567,000. The bonds with the warrants sold M 101. Question 2: Honest Corp.200.000 net income in 2001. On January 1, 2021 there were 200,000 shares of common stock outstanding on April 1. 20,000 shares were sued und on September 1, Honest bought 30,000 shares of treasury stock. There we 30,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged SS during 2001. The tax rate 40% During 2021, there were 10,000 shares of convertible preferred stock outstanding. The preferred 5100 par, pays $3,50 a year dividers, and is convertibile into three shares of common stock Honest issund $2,000,000 of 8% convertible bonds attace value curing 2020. Each $1.000 bord is convertible into 30 shares of common stock Required: Compute basic and diluted earnings per share for 2001. Complete the schedule and show all computation Nel Adin Adjusted Adjust Adjusted Se Income ment Net Income Share Star EPS