I need help on these questions.

Dlaz Company issued bonds with a $136.000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight-line method is used for amortization Required a. Use a financial statements model like the one shown next to demonstrate how (1) the January 1. Year 1, bond issue and (2) the December 31, Year 1. recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements(Use + for increase or for decrease. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Not all cells require input.) Answer is complete and correct. Effect of Transactions on Financial Statements Balance Sheet Income Statement Liabilities Stockholders Revenue Equity Expense Assets Event No. 1 2 Net Income Statement of Cash Flows + + FA OA + b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1 c. Determine the amount of interest expense reported on the Year 1 income statement d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement Answer is not complete b $ 133,552 c Carrying value Interest expense Carrying value Interest expense d Stuart Company issued bonds with a $207,000 face value on January 1, Year 1. The bonds had a 8 percent stated rate of interest and a five-year term Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 102. The straight-line method is used for amortization Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 1. bond issue and (2) the December 31, Year 1. recognition of Interest expense, including the amortization of the premium and the cash payment, affect the company's financial statements. (Use for increase or - for decrease. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Not ali cells require input.) Balance Sheet Answer is complete and correct. Effect of Transactions on Financial Statements Income Statement Stockholders Revenue Equity Expense Net Income Event No. Assets Liabilities Statement of Cash Flow 1 2 FA b. Determine the carrying value (ace value less discount or plus premium) of the bond liability as of December 31. Year 1 c. Determine the amount of interest expense reported on the Year 1 income statement d. Determine the carrying value of the bond liability as of December 31, Year 2 e. Determine the amount of Interest expense reported on the Year 2 income statement Answer is not complete b G Carrying value Interest expense Carrying value Interest expense d On January 1, Year 1, Hart Company issued bonds with a face value of $130,000, a stated rate of interest of 14 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $134,572 Hart used the effective interest rate method to amortize the bond premium (Round your intermediate calculations and final answers to the nearest whole number.) Required a. Prepare an amortization table Cash Payment Answer is not complete. Interest Premium Expense Amortization Carrying Value $131,572 133,866 s Date January 1, Year 1 December 31, Yeart December 31, Year 2 December 31, Year 3 December 31, Year 6 December 31, Year 5 Totals $ 18.200 18.200 18,200 18,200 18,200 $ 91,000 $ 17.494 17.403 17.299 17,182 17.050 $ 86,428 706 797 901 1,018 1,150 4,572 $ b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outflow for Interest that would appear in the operating activities section of the Year 4 statement of cash flows? Answer is complete and correct. b c Carrying value on the Year 4 Interest expense for Your 4 Cash outflow for interest in Your 4 $ 131,150 $ 17.182 $ 18.200 d Clayton Industries has the following account balances Current assets Noncurrent assets $15.000 Current liabilities 84.000 Noncurrent liabilities Stockholders' equity $ 11,000 51.000 37.000 The company wishes to raise $38,000 in cash and is considering two financing options: Clayton can sell $38,000 of bonds payable, or it can issue additional common stock for $38,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required 0-1. Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Currently If bonds are issued of stocks issued Current Ratio 1.36 tot 481 to 1 481 1 1 .-2. Compute the debt-to-assets ratio for Clayton's management (Round your answers to 1 decimal place.) Debt to Assets Ratio Currently H bonds are issued stock is issued b. Assume that after the funds are invested EBIT amounts to $16,800. Also assume the company pays $3,000 in dividends or $3,000 in interest depending on which source of financing is used. Based on a 40 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option Additional Retained Earnings Bonds Stock