Riot Company issued $500,000, 15-year, 7% bonds at 96.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014.
(b) Suppose the remaining Discount on Bonds Payable was $12,000 on December 31, 2019. Show the balance sheet presentation on this date.
(c) Explain why the bonds sold at a price below the face amount.