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Completing a Bond Amortization Table (Effective Interest Rate Method) Cagney Company sold $220,000 of bonds on July 1, 2018. A portion of the amortization table
Completing a Bond Amortization Table (Effective Interest Rate Method) Cagney Company sold $220,000 of bonds on July 1, 2018. A portion of the amortization table appears below. Cash Payment (Credit) Interest Expense (Debit) $9,665 Period Discount on Bonds Payable (Credit) $645 Discount on Bonds Payable Balance Carrying Value 12/31/19 $9,020 $4,584 $215,416 6/30/20 9,020 9,694 674 3,910 216,090 12/31/20 Required: 1. Indicate the stated interest rate on these bonds. 9.2 X % 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. Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Bonds Payable Balance Period Carrying Value 12/31/19 $9,020 $9,665 $645 $4,584 $215,416 6/30/20 9,020 9,694 674 3,910 216,090 12/31/20 4. Determine the liability balance after the interest payment is recorded on December 31, 2020. If required, round your answer to the nearest whole dollar
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