Exercise 10-12 Installment note amortization table LO C1 On January 1, 2019. Eagle Company borrows $35,000 cash by signing a four-year 7% installment note The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022. Prepare an amortization table for this installment note (Round all amounts to the nearest whole dollor (A) Beginning Balance Payments (B) (C) Debit interest Debit Notes Expense Payable (D) Credit Cash (1) Ending Balance Period Ending Date 2019 2020 2021 2022 Total S 0 AA 10-2 Comparative Analysis LO A3 Key figures for Apple and Google follow, millions Total assets Total liabilities Total equity Apple Current Year Prior Year $375,319 $321,686 241,272 193,437 134,047 125,249 Google Current Yes Prior Year $ 197,295 $167,497 44,795 152,502 139,036 Required: 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year 2. Use the ratios we computed in part 1 to determine which company's financing structure is least risky 3. Is its debt-to-equity ratio more risky or less risky compared to the industry (assumed) average of 0.5 tor (Apple and (1) Google? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year. (Round your final answers to 2 decimal places.) Debt-to Equity Ratio Apple's current year Apple's prior year Google's current year Google's prior year (Required Required 2 > Tableau DA 10-2: Exercise, Recording bond issuance and amortization LO P2 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions Frenza Bond Amortization Carrying Value Unamortized Discount $100,000 $80,000 $60,000 $40,000 $20,000 so January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, 1 Year 1 Year 2 Year 3 Cash & Inventory for Competing Companies Lika Market Rate for Company Bonds Frenza Nelo 1096 Frenza $50,000 8% Lika $40,000 696 496 $30,000 Nelo 296 $20,000 096 $10,000 Total Equity & Net Income $0 Frenza Lila Nelo Cash Cash Net Income Cash $100,000 $190,000 Inventory $85,000 Inventory Inventory Total Equity $400,000 $530,000 $275,000 tableau 1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1 Year 1 1(b). Prepare journal entries to record the first and second interest payments on June 30, Year 1 and December 31 Year 1 1(c). Prepare journal entries to record the maturity of the bonds on December 31, Year 3 2. Frenza needs to raise money to purchase new equipment. The founder is concerned about losing ownership control of her company. Which of the following ways to raise money would we recommend? 3. Frenza needs to raise money to purchase more inventory. The founder is concerned about the company's ability to make required cash payments when cash flows are low. Which of the following ways to raise money would we recommend? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. View transaction list Journal entry worksheet Required 1A Required 1B Required 10 Required 2 Required 3 Prepare journal entries to record the first and second interest payments on June 30, Year 1, and December 31, View transaction list Journal entry worksheet Record the semiannual interest payment and amortization on December 31, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal . Required 1A Required 1B Required 10 Required 2 Required 3 Prepare journal entries to record the maturity of the bonds on December 31, Year 3. View transaction list Journal entry worksheet
