What amount of proceeds from the bond issue would be

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A company issued 500,000, 12% (interest payable annually on May 1), 5-year bonds. At year end, the company had the following account balances:

Bonds payable 500,000 Cr

Discount on bonds 9,500 Dr

Interest payable 10,000 Cr

Conversion rights on convertible bonds 36,000 Cr

Interest expense 10,300 Dr

Question 1: What amount of proceeds from the bond issue would be shown under the financing activities section of the year-end cash flow statement?

Option a. 490,200

Option b. 526,200

Option c. 526,500

Option d. 545,800

Reference no: EM132525029

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