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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%.

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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 $88,000 $90,000 $92,000 $94,000 $96,000 $98,000 $100,000 $40,000 $20,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 1 $0 Year 2 Year 3 Cash & Inventory for Competing Companies Frenza Lika Nelo Market Rate for Company Bonds 1096 (Frenza 9% 896 $50,000 Lika 7% 696 $40,000 496 $4% Nelo... $30,000 $55,000 29 $20,000 $30,000 $32,000 $42,000 Cash $18,000 $7,000 096 $10,000 $0 Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Total Equity $400,000 $530,000 $275,000 Cash Cash Inventory Inventory Inventory Required 1A Required 1B Required 1C Required 2 Required 3 Prepare journal entries to record the issuance of 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. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general Journal Required 1A Required 1B Required 1C Required 2 Required 3 Prepare journal entries to record the first and second interest payments on June 30, Year 1, and December 31, Year 1. View transaction list Journal entry worksheet 1 2 Record the semiannual interest payment and amortization on June 30, Year 1. Note: Enter debits before credits. General Journal Debit Credit Dato Jun 30 Record entry Clear entry View general journal Required 1A Required 1B Required 1C 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

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