Question:
On January 2, 2014, West Company issued 9% bonds in the amount of $500,000 that mature on December 31, 2023. The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 31. West uses the effective interest method of amortizing bond discounts.
Required:
In its June 30, 2014, balance sheet, what net amount should West report as bonds payable?