Solution-Determine the stated interest rate on these bonds

Determine the stated interest rate on these bonds

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Reference no: EM131748246

Question - Completing a Debt Amortization Table

Cagney Company sold $250,000 of bonds on December 31, 2013. 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	$242,000
6/30/14	$12,000	$12,800	$800	$7,200	$242,800
12/31/14	12,000	12,800	800	6,400	243,600
3/30/15	?	?	?	?	?

Required -

a. Determine the stated interest rate on these bonds.

b. Calculate the interest expense and the discount amortization for the interest period ending June 30, 2015.

c. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2015.

Reference no: EM131748246

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Determine the stated interest rate on these bonds

Reference no: EM131748246

Reference no: EM131748246

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