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Exhibit 14-8 Piazzi, Inc. Sold $400,000 of Its 9%, Five-Year Bonds Dated

Question 84

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Exhibit 14-8
Piazzi, Inc. sold $400,000 of its 9%, five-year 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.
-Refer to Exhibit 14-8. The balance of Discount on Bonds Payable after the December 31, 2013, adjusting entry has been posted would be


A) $5,600.
B) $6,000.
C) $7,000.
D) $8,400.

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