Frenza bond Carrying value :Jan $1,$ year $1$: $105600$

June $30,$ year $1$: $108000$

December $31,$ year $1$: $110400$

June $30$ year $2$: $112800$

December $31,$ year $2$: $115200$

June $30$ year $3$: $117600$

December $31$ year $3$: $120000$

Cash & inventory for competing companies:

Frenza cash:$66000$

Frenza inventory: $36000$

Lika cash: $38400$

Lika inventory: $50400$

Nelo cash: $21600$

Nelo inventory: $8400$

Market rate for company bonds:

Frenza: $9\%$Lika: $7\%$Nelo: $4\%$

Net income

Frenza : $120000$

Lika: $228000$

Nelo:$102000$

Total equity:

Frenza: $480000$

Lika: $636000$

Nelo: $330000$

The founder of Frenza asks us to help her in accounting and analysis of her corporations bonds, which have an annual contract rate of $8\%.$

$1.$ Record the issuance of the bonds on January $1,$ year $1$

$2.$ Record the semiannual interest payment and amortization on June $30,$ year $1$

$3.$ Record the semiannual interest payment and amortization on December $31,$ year $1$

$4.$ Record the payment of bonds at the maturity date,December $31,$ year $3$

Assume semiannual interest is already recorded