On January 1, 2016, Sandhill issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Sandhill $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 Sandhill 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 Sandhill's net income in 2017 was $31,000 and was $28,000 in 2016. Compute basic and diluted earnings per share for Sandhill for 2017 and 2016. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2016 Basic earning per share Diluted earning per share " Assume that 75% of the holders of Sandhill's convertible bonds convert their bonds to stock on June 30, 2018, when Sandhill's stock is trading at $32 per share. Sandhill 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 o 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 On January 1, 2016, Sandhill issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Sandhill $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 Sandhill 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 Sandhill's net income in 2017 was $31,000 and was $28,000 in 2016. Compute basic and diluted earnings per share for Sandhill for 2017 and 2016. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2016 Basic earning per share Diluted earning per share " Assume that 75% of the holders of Sandhill's convertible bonds convert their bonds to stock on June 30, 2018, when Sandhill's stock is trading at $32 per share. Sandhill 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 o 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