Synchronous Corp. uses the August 1 10,000 shares of treasury stock are reissued at $10 per share. Dec 31 The preferred dividend is declared and a common stock dividend of 20 cents per share is declared. Required: Prepare the journal entries for the transactions above. Problem Two: Earnings Per Share: 15 points Arose Corporation presented the following data: Net Income $ 800,000 10% convertible bonds issued at par. Each convertible to 10 common shares $ 300,000 5% nonconvertible, noncumulative preferred stock, $100 par $ 500.000 Common Stock, $1 par $ 400,000 Tax Rate 40% Average Market Price of Common Stock $25 There were no changes during 2018 in the number of shares listed above. Arose Corporation also has Common Stock Options to purchase 50,000 shares of common stock at $20 per share. Required: a. Show well labeled work to compute the basic earnings per share for 2018, b. Show well labeled work to compute the diluted earnings per share for 2018. Be sure to indicate clearly if a security should be included or excluding in this computation