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Solar Energy Inc. Issued a $909,000, 9.5%, five-year bond on October 1, 2020. Interest is paid annually each October 1. Solar's year- end Is December
Solar Energy Inc. Issued a $909,000, 9.5%, 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 Discount Unamortized Carrying Expense Amort. Discount Value Oct. 1/20 $34,023 $874,977 Oct. 1/21 $ 86,355 $ 91,873 $ 5,518 28,505 888.495 Oct. 1/22 86,355 92,452 6,097 22,408 886.592 Oct. 1/23 86,355 93,092 6,737 15,671 893,329 Oct. 1/24 86,355 93,800 7,445 8,226 900,774 Oct. 1/25 86,355 94,581 3,226 909,600 $431,775 $465,797 $34,022 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. $885,500 b. $893,329 c. $895,900 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. $885,500 b. $893,329 c. $895,900 View transaction let Journal entry worksheet 1 2 3 Record the retirement of bond for $885,500. Note: Enter debits before credits. Date Oct. 1 2023 General Journal Debit Credit Record entry Clear entry View general journal
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