On July 1, 2020, Pike Inc

question 39

Multiple Choice

On July 1, 2020, Pike Inc. issued $ 500,000, 9% bonds, which mature on July 1, 2027. The bonds were issued for $ 469,500 to yield 10%. Pike uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2022, the adjusted balance in the Bonds Payable account should be

• A) $ 500,000.
• B) $ 493,900.
• C) $ 473,595.
• D) $ 471,450.