Mobbe Company issued \(\$ 500,000,15\)-year, \(7 \%\) bonds at 96 .

\section*{Instructions}

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.

(b) Suppose the remaining Discount on Bonds Payable was \(\$ 12,000\) on December 31, 2022. Show the balance sheet presentation on this date.

(c) Explain why the bonds sold at a price below the face amount.