Zeus Energy Inc. issued a $900,000, 5%, five-year bond on October 1, 2014. Interest is paid annually each October 1. Zeus€™s year-end is December 31.

Required
Using the amortization schedule provided below, record the entry to retire the bonds on October 1, 2017, for cash of:
a. $881,000
b. $883,500
c.$886,900

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Cash Interest Pald Period Interest Expense Discount Amort. Unamortized Carrying Period Ending Discount $37,911 31,186 24,057 16,500 8,490 Value $862,089 45,000 45,000 45,000 45,000 45,000 $225,000 S 51,725 52,129 52,557 53,010 53,490 262,911 6,725 7,129 7,557 8,010 8,490 $37,911 868,814 875,943 883,500 891,510 900,000