Exercise 9-62 (Algorithmic) Completing a Bond Amortization Table (Effective Interest Rate Method) Cagney Company sold $190,000 of bonds on June 30, 2010. A portion of the amortization table appears below. Carrying Value Period Cash Payment Interest Expense Discount on Bonds Discount on Bonds (Credit) (Debit) Payable (Credit) Payable Balance 12/31/11 $8,550 $8,827 $277 $2,340 6/30/12 8,550 8,820 270 2,070 12/31/12 $187,660 187,930 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 Interest Expense Discount on Bonds Discount on Bonds Carrying Value (Credit) (Debit) Payable (Credit) Payable Balance 12/31/11 $8,550 $8,827 $277 $2,340 $ 187,660 6/30/12 8,550 8,820 270 2,070 187,930 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. Check My Work