Ch 15: Homework Problems Question 1 of 14 < > View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. 0.67/1 E Metlock Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on NASDAQ Metlock Corp. has issued 14,000 units. Each unit consists of a $700 par, 12% subordinated debenture and 14 shares of $7 par common stock. The units were sold to outside investors for cash at $1.232 per unit. Prior to this sale, the 2-week ask price of common stock was $56 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Metlock transaction, under the following conditions. (Round answers to O decimal places, c.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) (1) Employing the incremental method (2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value. No. Account Titles and Explanation 1 Cash Bonds Payable Debit Credit homework FTODIES Question 1 of 14 No. Account Titles and Explanation 1. Cash Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock 2 Cash Discount on Bonds Payable Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock: Debit Credit 0.67/1 111