Vaughn Industries is a regional company, whose securities are thinly traded. Vaughn has issued 11,500 units. Each unit consists of a CHF575 par, 12% subordinated debenture and 12 shares of CHF6 par ordinary shares. The investment banker has retained 460 units as the underwriting fee. The other 11,040 units were sold to outside investors for cash at CHF978 per unit. Prior to this sale, the 2-week ask price of ordinary shares was CHF46 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 Vaughn's transaction, under the following conditions. (Round intermediate calculations to 5 decimal places, eg. 15.12467 and final answers to decimal places, eg. 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 for the amounts:) (1) Employing the incremental method. Employing the proportional method, assuming the recent price quote on the ordinary shares reflects fair value. (2) No. Account Titles and Explanation Debit Credit 1 2 47C Haze