Exercise 9-73 Completing a Debt Amortization Table (Straight Line)

Cagney Company sold $200,000 of bonds on January 1, 2020. 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	Bond Payable Carrying Value
At issue				$8,000	$192,000
06/30/20	$12,000	$12,800	$800	7,200	192,800
12/31/20	12,000	12,800	800	6,400	193,600
06/30/21	?	?	?	?	?

Required:

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

2. Calculate the interest expense and the discount amortization for the interest period ending June 30, 2021.

Interest expense	$
Discount amortization	$

3. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2021. $