On January 1, 2016, Martinez Company issued 10-year, $92,000 face value, 6% bonds at par (interest payable annually on January 1). Each $1,000 bond is convertible into 29 shares of Martinez $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. Martinez also has adopted a stock-option plan that granted options to key executives to purchase 6,000 shares of the companys common stock. The options were granted on January 2, 2016, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company (the service period is 2 years). The options expired 6 years from the date of grant. The option price was set at $5, and the fair value option-pricing model determines the total compensation expense to be $21,000. All of the options were exercised during the year 2018: 3,000 on January 3 when the market price was $7, and 1,000 on May 1 when the market price was $8 a share. (Ignore all tax effects.) (a) Correct answer icon Your answer is correct. Prepare the journal entry Martinez would have made on January 1, 2016, to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title Cash enter a debit amount 92,000 enter a credit amount enter an account title Bonds Payable enter a debit amount enter a credit amount 92000 eTextbook and Media List of Accounts Attempts: unlimited (b) Correct answer icon Your answer is correct. Prepare the journal entry to record interest expense and compensation expense in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 enter an account title to record interest expense on December 31 in 2017 Interest Expense enter a debit amount 5,520 enter a credit amount enter an account title to record interest expense on December 31 in 2017 Interest Payable enter a debit amount enter a credit amount 5,520 (To record interest expense for 2017) enter an account title to record compensation expense on December 31 in 2017 Compensation Expense enter a debit amount 10500 enter a credit amount enter an account title to record compensation expense on December 31 in 2017 Paid-in Capital-Stock Options enter a debit amount enter a credit amount 10500 (To record compensation expense for 2017) eTextbook and Media List of Accounts Attempts: unlimited (c) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct. Martinezs net income in 2017 was $30,000. Compute basic and diluted earnings per share for Martinez for 2017. Martinezs average stock price was $6 in 2017. (Round answers to 2 decimal places, e.g. 15.25.) Basic Earnings Per Share $enter a dollar amount rounded to 2 decimal places 3 Diluted Earnings Per Share $enter a dollar amount rounded to 2 decimal places