Moon Company issued $300,000, 10%, 5-year bonds on January 1, 2011, at. 106. Interest is payable annually on January 1. Moon uses the effective-interest method amortization and has a calendar year end and the bonds were issued for an effect interest rate of 8%. Prepare all journal entries made in 2012 related to the bond issue. Issuance of Bonds Payment and amortization on Dec. 31 Payment of interest on January 1, 2012