Sandhill Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are. 1. Issue 97,950 shares of common stock at $30 per share. (Cash dividends have not been paid nor has the payment of any contemplated.) 2. Issue 10%, 10-year bonds at face value for $2.938,500. It is estimated that the company will earn $701.500 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 20% and has 105,500 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for these two methods of financing. (Round earnings per share to 2 decimal places, e.g. 2.25.) $ Plan One Issue Stock Plan Two Issue Bonds $ Net income Earnings per share $ On August 1, Pharoah Company buys 1,000 shares of Estrada common stock for $33,000 cash. On December 1, Pharoah sells the stock investments for $36,000 in cash. Journalize the purchase and sale of the common stock. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required. select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit