On January 2 2023, SPA Co. issued convertible bonds, 9%, at par value $400,000. For every $1,000 the bonds can be converted into 40 ordinary shares (par value $10). The value of the equity component of the convertible bond is $10,000. SPA had a weighted-average ordinary shares (WASO) outstanding in 2023 of 60,000 shares. SPAS net profit (Net Income) in 2023 was $160,000 and the income tax rate was 30% Instructions:

1. Calculate SPAS diluted earnings per share for 2023

2. Make a journal entry if there is a conversion of bonds into common shares on the maturity date of the bonds.