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 $100,000 580,000 $60,000 $40,000 $20,000 50 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 Year 2 Year 3 Cash & Inventory for Competing Companies Market Rate for Company Bonds January 4, Tear une su, rear veremour, June 30, Tear vucumber 3, June 30, rear 3 vecumurs, 1 Year 1 Year 2 Year 3 Cash & Inventory for Competing Companies Frenza Lika Market Rate for Company Bonds Nelo 1096 Frenza $50,000 896 Lika 696 $40,000 496 Nelo. $30,000 $20,000 096 $10,000 $0 Total Equity & Net Income Frenza Lika $100,000 $190.000 Nelo Cash Cash Cash Net Income $85.000 Inventory Inventory Inventory Total Equity $400,000 $530,000 $275,000 hlen $10,000 Total Equity & Net Income 50 Frenza Lika Nelo Cash Cash Net Income Cash $100,000 $190,000 $85,000 Inventory Inventory Inventory Total Equity $400,000 $530,000 $275,000 +ableau O 1. What is the premium or discount on the Frenza bonds on the issue date of January 1, Year 1? 2. Prepare the journal entry for Issuance of the Frenza bonds on January 1, Year 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the premium or discount on the Frenza bonds on the issue date of January 1, Year 1? Amount Premium or discount? discount What is the premium or discount on the Frenza bonds on the issue date of January 1. Year 1? Required 1 Required 2 > Cash Cash Cash Net Income $100,000 $190,000 $85,000 Inventory Inventory Inventory Total Equity $400,000 $530,000 $275,000 + obleau 1. What is the premium or discount on the Frenza bonds on the issue date of January 1, Year 1? 2. Prepare the journal entry for issuance of the Frenza bonds on January 1, Year 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry for issuance of the Frenza bonds on January 1, Year 1. View transaction list Journal entry worksheet 1 Record the issuance of the bonds on January 1, Year 1. Note: Enter debits before credits Dato General Journal Debit Credit fanns
