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 0 o $80,000 Po o 80 reg o $60,000 o - $40,000 94 9 8b $20,000 $0 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 Frenza lika Nel 1096 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 Market Rate for Company Bonds Frenza Lika Nelo 1096 Os Frenza $50,000 -71 896 P op Lika $40,000 696 9. 1 P A $30,000 496 Nelo 30g 22/0 18 296 $20,000 . + 145 096 4 $10,000 Total Equity & Net Income $0 Frenza Lika Nelo Cash Cash Net Income $100,000 Cash $190,000 $85,000 Inventory Inventory Inventory Total Equity $400,000 $530,000 $275,000 + ableau 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 Journal entry worksheet 1 2 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 Journal entry worksheet 1 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 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 NII IL Issue common stock Reissuing treasury stock Required 1A Required 1B Required 1C 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