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.

Required:

In its June 30, 20X1, balance sheet, what net amount should West report as bonds payable?