Flounder Corporetion is a regional company which is an SEC registrant. The carporation's securities are thinly traded on NASDAQ, Flounder Corp. has issued 14,000 units. Each unit consists of a $700 pec, 12% subordinated debenture and 14 shares of 57 par common stock. The units were sold to outside investors for cash at $1,232 per unit. Prior to this sale, the 2-wecik ask price of common stock was $56 pe share. Twelve percent is a reasonable market yleld for the debentures, and therefore the par value of the bonds is equal to the fair value (a) Prepere the jeumal entry to record Flounder's transaction, under the following conditions. (Round anawer to D decimal places, eg. 38,487. Credit account titles are automatically Indanted when amount is entered. Do not indent manually. If no entry le required, select "Ao Entry for the account titlen and enter o for the amounts.) (1) Empleying the incremental method. (2) Employing the proportional method, assuming the recent price quote on the common stock refiects fair value. Mo. Account Tties and Explanation Debit Credit Cesh 7,448,000 Common Stock 2.000