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 hercompany. 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 requiredcash payments when cash flows are low. Which of the following ways to raise money would we recommend?Complete this question by entering your answers in the tabs below.Required 1A Required 1B Required 1C Required 2Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1.View transaction list View journal entry worksheetNo1DateJan 01Required 3General JournalCashDiscount on bonds payableBonds payableRequired 1ARequired 1B>Debit88,00012,000Credit100,000 The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rateof 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance thegrowth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations forher business decisions.$100,000$80,000$60,000$40,000$20,000$0Frenza Bond AmortizationCarrying ValueUnamortized DiscountJanuary 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31,1Year 1Year 2Year 3Cash & Inventory forCompeting CompaniesMarket Rate for CompanyBonds

The journal entry at the time of the issuance of bonds is made in the books of company on journal…

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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