What amount should slidell report as bonds payable

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Problem 1: On January 1, 20X2, Slidell Co. issued 500 of its 8%, $1,000 bonds at 97 plus accrued interest. The bonds are dated October 1, 20X1, and mature on October, 20X6. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1, 20X1 to January 1, 20X2 amounted to $10,000. On January 1, 20X2, what amount should Slidell report as bonds payable, net of discount?

Option 1: $485,000

Option 2: $500,000

Option 3: $490,000

Option 4: $970,000

Reference no: EM132859073

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