On January 1, Ocampo Corporation sold $360,000 of 10-year sinking fund bonds. The corporation expects to earn 9% on the sinking fund balance and is required to deposit $23,000 at the end of each year with the trustee. Record the following entries:
a. The first deposit.
b. Earnings of $2,070 at end of first period.
c. Payment of bondholders at maturity with sinking fund having a balance of $360,425.