On January 2, 2015, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, 2025. 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 discount.
In its June 30, 2015 balance sheet, what amount should West report as bonds payable?
a) $500,000
b) $469,500
c) $471,025
d) $470,475
