QUESTION

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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?

Required 1A, Required 1B and Required 1C

General Journal:

  • Accounts payable
  • Accounts receivable
  • Accumulated depreciation
  • Bond interest expense
  • Bond interest payable
  • Bonds payable
  • Cash
  • Common stock
  • Contributed capital in excess of par value
  • Depreciation expense
  • Discount on bonds payable
  • Gain on retirement of bonds payable
  • Interest payable
  • Lease liability
  • Leased asset
  • Loss on retirement of bonds payable
  • Premium on bonds payable
  • Rental expense


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 $\$ 100,000$ $\$ 80,000$ $\$ 60,000$ $\$ 40,000$ $\$ 20,000$ so January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 31, June 30, Year 3 December 31, 1 Year 2 Year 3 Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b \mid e a v$


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline Total Equity & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b l e a v$


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \\ \hline \end{tabular} $+a b \mid e a v$


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 $\$ 100,000$ $\$ 80,000$ $\$ 60,000$ $\$ 40,000$ $\$ 20,000$ so January 1, Year June : 1 Frenza: June 30, Year 1 Unamortized Discount: $\$ 10,000$ Carrying value Unamortized Discount


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b \mid e a v$


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 $\$ 100,000$ $\$ 80,000$ $\$ 60,000$ $\$ 40,000$ $\$ 20,000$ so January 1, Year June 30, Year 1 December 31, June 30, Year 2 December 1 Carrying Value Unamortized Discount


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \\ \hline \end{tabular} $+a b \mid e a v$


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b l e a v$


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Nelo $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \\ \hline \end{tabular} $+a b \mid e a v$


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. Cash \& Inventory for Competing Companies


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ Nelo $2 \%$ $0 \%$ Total Equity \& Net Income $\$ 0$ 范 意 Nelo renza 00,000 Nelo $\$ 190,000$ $\$ 85,000$ $\$ 530,000$ $\$ 275,000$ $+a b \mid e a v$


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ Market Rate for Bonds: $9 \%$ $4 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b l e a v$ \& 安 ["]


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ Lika $6 \%$ $4 \%$ Market Rate for Bonds: $7 \%$ Neio $2 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b l e a v$


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. Cash \& Inventory for Competing Companies Market Rate for Company Bonds $8 \%$ $6 \%$ $4 \%$ $2 \%$ Market Rate for Bonds: $4 \%$ $0 \%$ Total Equity \& Net Income \begin{tabular}{|cccc} & Frenza & Lika & Nelo \\ \hline Net Income & $\$ 100,000$ & $\$ 190,000$ & $\$ 85,000$ \\ \hline \multirow{2}{*}{ Total Equity } & $\$ 400,000$ & $\$ 530,000$ & $\$ 275,000$ \end{tabular} $+a b l e a v$

Required 1A, Required 1B and Required 1C

General Journal:

  • Accounts payable
  • Accounts receivable
  • Accumulated depreciation
  • Bond interest expense
  • Bond interest payable
  • Bonds payable
  • Cash
  • Common stock
  • Contributed capital in excess of par value
  • Depreciation expense
  • Discount on bonds payable
  • Gain on retirement of bonds payable
  • Interest payable
  • Lease liability
  • Leased asset
  • Loss on retirement of bonds payable
  • Premium on bonds payable
  • Rental expense


1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. View transaction list Journal entry worksheet 1 Record the issuance of the bonds on January 1, Year 1. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline Jan 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general joumal Required 1A. Required 1B


1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} Prepare journal entries to record the first and second interest payments on June 30, Year 1, and December 31, Year 1. View transaction list Journal entry worksheet Record the semiannual interest payment and amortization on June 30 , Year 1. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline Jun 30 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general journal Required 1A Required 1C


1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare joumal entries to record the first and second interest payments on June 30, Year 1 , and December 31 , Year 1. 1(c). Prepare joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} Prepare journal entries to record the first and second interest payments on June 30, Year 1, and December 31, Year 1. View transaction list Journal entry worksheet Record the semiannual interest payment and amortization on December 31 , Year 1. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline Dec 31 & & & \\ \hline & & & \\ \hline & \\ \hline \end{tabular} Record entry Clear entry Vew general joumal Required 1A Required 1C


1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} Prepare journal entries to record the maturity of the bonds on December 31, Year 3. View transaetion list Journal entry worksheet 1 Record the payment of bonds at the maturity date, December 31 , Year 3. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline Dec 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general joumal Required 1B Required 2 >


1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b). Prepare joumal entries to record the first and second interest payments on June 30, Year 1, and December 31 , Year 1. 1(c). Prepare joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} 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 Required 1C Required 3 >


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 joumal 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? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|} \hline Required 1A & Required 1B & Required 1C & Required 2 & Required 3 \\ \hline \end{tabular} 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 Required 2 Required 3 ?

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