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.

Period Ending

Cash

Interest

Paid

Period

Interest

Expense

Discount

Amort.

Unamortized

Discount

Carrying

Value

Oct. 1/20

$

37,911

$

862,089

Oct. 1/21

$

45,000

$

51,725

$

6,725

31,186

868,814

Oct. 1/22

45,000

52,129

7,129

24,057

875,943

Oct. 1/23

45,000

52,557

7,557

16,500

883,500

Oct. 1/24

45,000

53,010

8,010

8,490

891,510

Oct. 1/25

45,000

53,490

8,490

0

900,000

$

225,000

$

262,911

$

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