On March 1, 2017, Crane Company sold 25,400 of its 9%, 20-year, $1,000 face value bonds at 98. Interest payment dates are March 1 and September 1, and the company uses the straight-line method of bond discount amortization. On February 1, 2018, Crane took advantage of favorable prices of its stock to extinguish 3,050 of the bonds by issuing 151,500 shares of its $1 par value common stock. At this time, the accrued interest was paid in cash. The company’s stock was selling for $20.25 per share on February 1, 2018.Prepare the journal entries needed on the books of Swifty Company to record the following.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?