On January 1, 1989, Daisy Corporation sold \(\$ 2.5\) million of 10 -year sinking fund bonds. The corporation expects to earn \(10 \%\) on assets deposited with the sinking fund trustee and is required to deposit \(\$ 156,864\) with the trustee at the end of each year in the life of the bonds.

(a) Prepare a general journal entry to record the first deposit of \(\$ 156,864\) with the trustee on January 1, 1990.

(b) Prepare a general journal entry on December 31, 1990, to record the \(\$ 15,686\) earnings for 1990 reported to the corporation by the trustee.

(c) After the final payment to the trustee, the sinking fund had an accumulated balance of \(\$ 2,503,765\). Prepare the general journal entry to record the payment to the bondholders on January 1,1999 .