Exercise 9-81 (Algorithmic) Completing a Bond Amortization Table (Effective Interest Rate Method) Cagney Company sold $200,000 of bonds on July 1, 2018. A portion of the amortization table appears below. Discount on Discount on Cash Payment Interest Bonds Payable Bonds Payable Period (Credit) Expense (Debit) (Credit) Balance Carrying Value 12/31/19 $8,600 $9,150 $550 $4,771 $195,229 6/30/ 20 8 ,600 9,176 576 4,195 195,805 12/31/20 Required: 1. Indicate the stated interest rate on these bonds. 8.6 % 2. Calculate the effective annual interest rate on these bonds (rounded to the nearest 0.1%). 3. Determine the interest expense and discount amortization for the interest period ending December 31, 2020. If required, round your answers to the nearest whole dollar Discount on Bonds Payable Balance Period 12/31/19 6/30/20 Carrying Value Discount on Bonds Payable (Credit) $550 576 Cash Payment (Credit) $8,600 8,600 Interest Expense (Debit) $9,150 9,176 $4,271 $195,229 4,195 195,805 12/31/20 4. Determine the ability balance after the interest payment is recorded on December 31, 2020. If required, round your answer to the nearest whole dollar $