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5 Solar Energy Inc. issued a $907,000, 8.5%, five-year bond on October 1, 2020. Interest is paid annually each October 1. Solar's year-end is December
5 Solar Energy Inc. issued a $907,000, 8.5%, five-year bond on October 1, 2020. Interest is paid annually each October 1. Solar's year-end is December 31. Period Ending Cash Interest Paid Period Interest Expense Discount Unamortized Carrying Amort. Discount Value $34,826 $ 872,174 $ 77,095 $ 82,857 $ 5,762 29,065 877,935 77,095 83,404 6,309 22,756 884, 244 Oct. 1/20 Oct. 1/21 Oct. 1/22 Oct. 1/23 Oct. 1/24 Oct. 1/25 77,095 84,003 6,908 15,848 891, 152 77,095 84,659 7,564 8,283 898,716 77,095 85,378 8,283 0 907,000 $385,475 $420, 301 $34, 826 Assume that interest has already been paid on October 1, 2023. 5 Required: Using the amortization schedule provided above, record the entry to retire the bonds on October 1, 2023, for cash of: a. $884,500 b. $891,152 c. $893,900
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