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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 $ 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 Unamortized Discount $37,911 31,186 24,057 16,500 8,490 Carrying Value $862,089 868,814 875,943 883,500 891,510 900,000 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 1 Record the retirement of bond for $881,000. > 2 Record the retirement of bond for $883,500. 3 Record the retirement of bond for $886,900
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