Solar Energy Inc. issued a $900,000, 5%, five-year bond on October 1, 2023. Interest is paid annually
Question:
Solar Energy Inc. issued a $900,000, 5%, five-year bond on October 1, 2023. Interest is paid annually each October 1. Solar’s year-end is December 31.
RequiredUsing the amortization schedule provided below, record the entry to retire the bonds on October 1, 2026, for cash of:a. $881,000b. $883,500c. $886,900
Transcribed Image Text:
Period Ending Cash Interest Paid Period Interest Expense Discount Amort. Unamortized Discount Carrying Value $862,089 868,814 875,943 883,500 891,510 900,000 Oct. 1/23 Oct. 1/24 Oct. 1/25 Oct. 1/26 Oct. 1/27 Oct. 1/28 $ 45,000 45,000 45,000 45,000 45,000 $225,000 $ 51,725 52,129 52,557 53,010 53,490 $262,911 $ 6,725 7,129 7,557 8,010 8,490 $37,911 $37,911 31,186 24,057 16,500 8,490 -0-
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a 2026 Oct 1 b 2026 Oct 1 C 2026 Oct 1 Bonds Payable Discount on Bonds ...View the full answer
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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