Question 7 (Bond issued at discount) Naked Juice issues $600,000 of 7% bonds, due in 10 years on January 1, 2013. The bonds were issued for $559,224, and pay interest each July 1 and January 1. Naked Juice uses the effective-interest method. Prepare the companys journal entries for (a) the January issuance, (b), the July 1 interest payment, and (c) the December 31 adjusting entry.