Exercise 9-62 (Algorithmic) Completing a Bond Amortization Table (Effective Interest Rate Method)

Cagney Company sold $220,000 of bonds on June 30, 2010. A portion of the amortization table appears below.

Period	Cash Payment (Credit)		Interest Expense (Debit)		Discount on Bonds Payable (Credit)		Discount on Bonds Payable Balance		Carrying Value
12/31/11	$9,900		$10,177		$277		$2,340		$217,660
6/30/12	9,900		10,230		330		2,010		217,990
12/31/12	?		?		?		?		?

1. Indicate the stated interest rate on these bonds. %

2. Calculate the effective annual interest rate on these bonds (rounded to the nearest 0.1 percent). %

3. Determine the interest expense and discount amortization for the interest period ending December 31, 2012. If required, round your answers to the nearest whole dollar.

Period	Cash Payment (Credit)		Interest Expense (Debit)		Discount on Bonds Payable (Credit)		Discount on Bonds Payable Balance		Carrying Value
12/31/11	$9,900		$10,177		$277		$2,340		$217,660
6/30/12	9,900		10,230		330		2,010		217,990
12/31/12

4. Determine the liability balance after the interest payment is recorded on December 31, 2012. If required, round your answer to the nearest whole dollar. $