Moonlight Company issued $500,000, 10%, 5-year bonds on January 1, 2014, at 106. Interest is payable annually on January 1. Moonlight uses the effective-interest method amortization and has a calendar year end and the bonds were issued for an effective interest rate of 8%. Required: Determine the selling price of the bonds: Determine the amount of the Premium or Discount on Jan. 1, 2014: Prepare the journal entry at date of issuance. Prepare an amortization schedule for the first two year using the effective interest method: (round to the nearest dollar)