! Required information (The following information applies to the questions displayed below.] On January 1, 2018, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 10%, the bonds will issue at $283,405. Required: 1. Complete the first three rows of an amortization table. Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/18 6/30/18 12/31/18 ! Required information (The following information applies to the questions displayed below) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $27 million gaming center: a. Issue $27 million of 5% bonds at face amount b. Issue 1 million shares of common stock for $27 per share. Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answer in dollars, not millions. (.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places. Round your "Earnings per Share" to 2 decimal places.) Issue Bonds Issue Stock $ 10,200,000 $ 10,200,000 Operating income Interest expense (bonds only) Income before tax Income tax expense (40%) Net income Number of shares Earnings per share $ 0 0 $ 3,200,000 4,200,000