Piazzi, Inc. sold $400,000 of its 9%, fiveyear bonds dated January 1, 2013, on May 1, 2013, for $393,000 plus
Piazzi, Inc. sold $400,000 of its 9%, fiveyear bonds dated January 1, 2013, on May 1, 2013, for $393,000 plus
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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Exhibit 14-8 Piazzi, Inc. sold $400,000 of its 9%, fiveyear bonds dated January 1, 2013, on May 1, 2013, for $393,000 plus accrued interest. Interest is paid on January 1 and July 1 and straight-line amortization is used.
Interest expense after the July 1, 2013, interest payment has been posted is
- $12,500.
- $6,250.
- $12,000.
- $18,000.
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