Heineken N.V. reports the following information for its Loans and Borrowings as of December 31, 2008, including proceeds and repayments for the year ended December 31, 2008 (euros in millions).

Loans and borrowings (noncurrent liabilities)
Loans and borrowings, December 31, 2008		9,084
Proceeds (cash) from issuances of loans and borrowings		6,361
Repayments (in cash) of loans and borrowings		(2,532	)

1.	Prepare Heinekens journal entry to record its cash proceeds from issuances of its loans andborrowings for 2008. Assume that the par value of these issuances is 6,000. (Enter your answers in millions of euros. Omit the "" sign in your response.)

General Journal	Debit	Credit

2.	Prepare Heinekens journal entry to record its cash repayments of its loans and borrowings for 2008. Assume that the par value of these issuances is 2,400, and the premium on them is 32. (Enter your answers in millions of euros. Omit the "" sign in your response.)

General Journal	Debit	Credit

3.	Compute the discount or premium on its loans and borrowings as of December 31, 2008, assuming that the par value of these liabilities is 9,000. (Enter your answer in millions of euros. Omit the "" sign in your response.)

4.	Given the facts in part 3 and viewing the entirety of loans and borrowings as one issuance, was the contract rate on these loans and borrowings higher or lower than the market rate at the time ofissuance? (Assume that Heinekens credit rating has remained the same.)

Lower

Higher