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Completing a Debt Amortization Table (Straight Line) Cagney Company sold $215,000 of bonds on January 1, 2020. A portion of the amortization table appears below.
Completing a Debt Amortization Table (Straight Line)
Cagney Company sold $215,000 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 | Carrying Value |
At issue | $8,000 | $207,000 | |||
06/30/20 | $12,000 | $12,800 | $800 | 7,200 | 207,800 |
12/31/20 | 12,000 | 12,800 | 800 | 6,400 | 208,600 |
06/30/21 | ? | ? | ? | ? | ? |
Required:
1. Determine the stated interest rate on these bonds. Round your answer to the nearest whole number. %
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. $
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