here is 2 problems please help

Chapter 14: Accounting for LongTerm Liabilities: Bonds and Notes 1. Sorenson Co.. is considering the following alternative plans for nancing their company: Plan I Plan 11 Issue 10% Bonds (at face) - $3,000,000 Issue $10 pa]: Common Stock $4,000,000 $1,000,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative nancing plans, assuming income before bond interest and income tax is $1,000,000.| 2. (a) Prepare the journal entry to issue $200,000 bonds which sold for $195,000. (1)) Prepare the journal entry to issue $200,000 bonds which sold for $204,000