Solar Energy Inc. issued a $900,000, 5%, five-year bond on October 1, 2020. Interest is paid annually each October 1. Solar?s year-end is December 31.

Required

Using the amortization schedule provided below, record the entry to retire the bonds on October 1, 2023, for cash of:

a. $881,000

b. $883,500

c. $886,900

Transcribed Image Text:

Cash Period Interest Discount Carrying Value Interest Unamortized Discount Perlod Ending Paid Expense Amort. $862,089 Oct. 1/20 Oct. 1/21 Oct. 1/22 Oct. 1/23 Oct. 1/24 Oct. 1/25 $37,911 31,186 24,057 16,500 8,490 -0- $ 51,725 52,129 52,557 53,010 53,490 $ 6,725 7,129 7,557 8,010 8,490 $ 45,000 868,814 875,943 45,000 45,000 45,000 883,500 891,510 45,000 $225,000 900,000 $262,911 $37,911