Cagney Company sold $200,000 of bonds on December 31, 2011. A portion of the amortization table appears below.

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, 2013.
3. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2013.

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Cash Payment Interest Discount on Bonds Discount on Bonds Carrying Period Credit) Expense (Debit) Payable (Credit) Payable Balance Value $8,000 7,200 6,400 $192,000 192,800 193,600 issUe 06/30/12 $12,000 $12,800 12,800 $800 800 12/31/12 2,000 06/30/13