3.33 6 points Tableau DA 10-2: Exercise, Recording bond issuance and amortization LO P2 [similar to EX 10-6] 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. eBook $100,000 Print $80,000 References $60,000 $40,000 $20,000 $0 Frenza Bond Amortization Carrying Value Unamortized Discount January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, Year 3 1 Year 1 Year 2 3.33 points 6 Cash & Inventory for Competing Companies $50,000 eBook $40,000 Print $30,000 References $20,000 $10,000 $0 Cash #+ableau Inventory Cash Frenza Lika Inventory Cash Inventory Market Rate for Company Nelo 10% Frenza 8% 2% 0% 4% 6% Bonds Lika Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Total Equity $400,000 $530,000 $275,000 Nelo 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 company's ability to make required cash payments when cash flows are low. Which of the following ways to raise money would we recommend? 3.33 points 6 Cash & Inventory for Competing Companies $50,000 eBook $40,000 Print $30,000 References $20,000 $10,000 $0 Cash #+ableau Inventory Cash Frenza Lika Inventory Cash Inventory Market Rate for Company Nelo 10% Frenza 8% 2% 0% 4% 6% Bonds Lika Total Equity & Net Income Frenza Lika Nelo Net Income $100,000 $190,000 $85,000 Total Equity $400,000 $530,000 $275,000 Nelo 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 company's ability to make required cash payments when cash flows are low. Which of the following ways to raise money would we recommend