On January 1, 2019, Novak issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Novak $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 2020. (Ignore all tax effects.) (a) Your answer is correct. Prepare the journal entry Novak would have made on January 1, 2019, to record the issuance of the bonds. (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 Jan. 31, 2019 Cash 300000 Bonds Payable 300000 eTextbook and Media List of Accounts Attempts: 1 of 3 used Your answer is correct. Novak's net income in 2020 was $34,000 and was $32,000 in 2019. Compute basic and diluted earnings per share for Novak for 2020 and 2019. (Round answers to 2 decimal places, e.g. 52.75.) 2020 2019 Basic earning per share $ 3.40 $ 3.20 Diluted earning per share $ 2.74 $ 2.63 e Textbook and Media List of Accounts Attempts: 2 of 3 used (c) Assume that 75% of the holders of Novak's convertible bonds convert their bonds to stock on June 30, 2021, when Novak's stock is trading at $32 per share. Novak 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 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jun 30, 2021