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Moon company issued $500,000, 10%, 6-year bonds on 01/01/2007. Interest is payable annually on January 1. Moon uses the effective interest method of amortization and

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Moon company issued $500,000, 10%, 6-year bonds on 01/01/2007. Interest is payable annually on January 1. Moon uses the effective interest method of amortization and has a calendar year end and the bonds were issued for an effective interest rate of 8%. a) Prepare the Journal entry for the bond issuance. b) Prepare the journal entry for the second annual payment of interest

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