Flint Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on NASDAQ $($National Association of Securities Dealers Quotes$).$ Flint Corp. has issued $10,000$ units. Each unit consists of a $$500$ par, $12\%$ subordinated debenture and $10$ shares of $$5$ par common stock. The units were sold to outside investors for cash at $$860$ per unit. Prior to this sale the $2-$week ask price of common stock was $$40$ 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 Flint' transaction, under the following conditions: $($Round answers to O decimal place, e$.$g$.38,487.$ Credit account titles are automatically indented when the 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. List all debit entries before credit entries.$)$ Employing the incremental method. Employing the proportional method, assuming the recent price quotes on the common stock reflects fair value.