Solar Energy Inc. issued a $915,000, 7.0%, five-year bond on October 1, 2023. 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 Carrying Discount Value Oct. 1/23 $36,533 $878,467 Oct. 1/24 Oct. 1/25 $ 64,050 64,050 $ 70,277 $ 6,227 30,306 884,694 78,776 6,726 23,580 891,420 Oct. 1/26 64,050 71,314 17.264 16,316 898,684 Oct. 1/27 64,058 71,895 7,845 8,472 Oct. 1/28 64,050 72,522 8,471 996, 529 915,000 $320,250 $356,784 $36,533 Assume that interest has already been paid on October 1, 2026. Required: Using the amortization schedule provided above, record the entry to retire the bonds on October 1, 2026, for cash of: a. $888,500 b. $898,684 c. $901,900 View transaction list Journal entry worksheet 1 2 3 Record the retirement of bond for $888,500. Note: Enter debits before credits. Date Oct. 1 2026 General Journal Debit Credit Record entry Clear entry View general journal

Solar Energy Inc. issued a $915,000, 7.0%, five-year bond on October 1, 2023. 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 Carrying Discount Value Oct. 1/23 $36,533 $878,467 Oct. 1/24 Oct. 1/25 $ 64,050 64,050 $ 70,277 $ 6,227 30,306 884,694 78,776 6,726 23,580 891,420 Oct. 1/26 64,050 71,314 17.264 16,316 898,684 Oct. 1/27 64,058 71,895 7,845 8,472 Oct. 1/28 64,050 72,522 8,471 996, 529 915,000 $320,250 $356,784 $36,533 Assume that interest has already been paid on October 1, 2026. Required: Using the amortization schedule provided above, record the entry to retire the bonds on October 1, 2026, for cash of: a. $888,500 b. $898,684 c. $901,900 View transaction list Journal entry worksheet 1 2 3 Record the retirement of bond for $888,500. Note: Enter debits before credits. Date Oct. 1 2026 General Journal Debit Credit Record entry Clear entry View general journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject:: accounting
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