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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
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 Cash Interest Paid Period Interest Expense Discount Amort. Period Ending Oct. 1/20 Oct. 1/21 Oct. 1/22 Oct. 1/23 Oct. 1/24 Oct. 1/25 $ 6,725 7,129 7,557 $ 45,000 45,000 45,000 45,000 45.000 $225,000 $ 51,725 52,129 52,557 53,010 53,490 $262,911 Unamortized Discount $37,911 31,186 24.057 16,500 8,490 0 Carrying Value $862,089 868,814 875,943 383,500 891,510 900,000 8,010 8.490 $37,911 Assume that interest has already been paid on October 1, 2023 Required: Using the amortization schedule provided above, record the entry to retire the bonds on October 1, 2023, for cash of: a. $881,000 b. $883,500 c. $886.900 View transaction list Activate gnment 6 0 Savod VIEW USGCLIONTIST Journal entry worksheet Record the retirement of bond for $886,900. Note: Enter debits before credits. General Journal Debit Credit Date Oct. 1 2023 Record entry Clear entry View general journal
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