Completing a Debt Amortization Table (Straight Line)

Cagney Company sold $225,000 of bonds on December 31, 2011. A portion of the amortization table appears below.1. Determine the stated interest rate on these bonds. Round your answer to the nearest whole.

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

Period Cash Payment (Credit) Interest Expense (Debit) Carrying Value Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance $8,000 At issue $217,000 6/30/12 $12,000 $12,800 $800 7,200 $217,800 12/31/12 800 6,400 218,600 12,000 ? 12,800 ? 6/30/13