On January 1, 2011, Viper Issued 10, 2-Year, 10% $1,000 Bonds For $9,323. Interest Is Paid Every June 30 And December 31

This study source was downloaded by 100000859819779 from CourseHero.com on 02-26-2023 13:33:18 GMT -06:00https://www.coursehero.com/file/188823143/ACCY502LiveSession3In-classExercisedocx/Powered by TCPDF (www.tcpdf.org) On January 1, 2011, Viper issued 10, 2-year, 10% $1,000 bonds for $9,323. Interest is paid everyJune 30 and December 31. The annual effective rate at issuance was 14%.Required: a) Present the amortization table.Period Eff. Interest Cash Payment Change O/S Balance01/01/2011 $9,32306/30/201112/31/201106/30/201212/31/2012b) Assume that due to market changes , the annual effective rate became 10% on June 30, 2011. Record the journal entries for June 30, 2011.c) Further, assume that due to a change in Vipers credit risk , the annual effective rate became 12% on December 31, 2011. Record the journal entries for December 31, 2011.d) What is the total effect of the bonds on Vipers 2011 income?