The founder of Frenza asks us to assist her in accounting and analysis of the corporations 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.

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 companys ability to make required cash payments when cash flows are low. Which of the following ways to raise money would we recommend?

Frenza Bond Amortization 0090097 Carrying Value Unamortized Discount $100,000 $100,000 to Wood Rooo boco $80,000 $60,000 $40,000 $20,000 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 & Tnventory for Competing Companies Frenza Lika Nelo 55000 $50,000 Marker Rare for company Bonds 1 096 42000 $40,000 $30,000 32000 18000 $20,000 $10,000 Toro Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Cash Cash nventory Cash nventory Tatal.Eauit.....S400,000.... .$530,000... .$275.00.... Required 1A Required 1B Required 10 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 Record the issuance of the bonds on January 1, Year 1. Note: Enter debits before credits General Journal Debit Credit Date Jan 01 Record entry Clear entry View general journal Required 1A Required 1B > 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 View transaction list Journal entry worksheet Record the semiannual interest payment and amortization on June 30, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30 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 Record the payment of bonds at the maturity date, December 31, Year 3. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Required 1B Required 2 > Required 1A Required 1B Required 1C Required 2 Required 3 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? (Select all that apply.) Issue bonds Issue a note to a bank Issue common stock Reissuing treasury stock O Required 1A Required 1B Required 10 Required 2 Required 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? (Select all that apply.) Issue bonds Issue a note to a bank issue common stock Issue preferred stock Frenza Bond Amortization 0090097 Carrying Value Unamortized Discount $100,000 $100,000 to Wood Rooo boco $80,000 $60,000 $40,000 $20,000 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 & Tnventory for Competing Companies Frenza Lika Nelo 55000 $50,000 Marker Rare for company Bonds 1 096 42000 $40,000 $30,000 32000 18000 $20,000 $10,000 Toro Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Cash Cash nventory Cash nventory Tatal.Eauit.....S400,000.... .$530,000... .$275.00.... Required 1A Required 1B Required 10 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 Record the issuance of the bonds on January 1, Year 1. Note: Enter debits before credits General Journal Debit Credit Date Jan 01 Record entry Clear entry View general journal Required 1A Required 1B > 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 View transaction list Journal entry worksheet Record the semiannual interest payment and amortization on June 30, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30 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 Record the payment of bonds at the maturity date, December 31, Year 3. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Required 1B Required 2 > Required 1A Required 1B Required 1C Required 2 Required 3 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? (Select all that apply.) Issue bonds Issue a note to a bank Issue common stock Reissuing treasury stock O Required 1A Required 1B Required 10 Required 2 Required 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? (Select all that apply.) Issue bonds Issue a note to a bank issue common stock Issue preferred stock