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Excercise 12-4 Determining a bond's balance sheet value (LO 12-2) On January 2, 20X1, West Company issued 9% 10-year bonds in the amount of $500,000
Excercise 12-4 Determining a bond's balance sheet value (LO 12-2)
On January 2, 20X1, West Company issued 9% 10-year bonds in the amount of $500,000 that mature on December 31, 20X9. 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.
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In its June 30, 20X1, balance sheet, what net amount should West report as bonds payable?
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