So far I've only found one way to put a bonfire out and that's by watering it with your watering can.
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Take the bonfire set out of the toolbox, find somewhere on the grass, get out your bonfire set and press the button you would usually press if you were to use your tools which would be Z if it was the wii version.
you do something
You can find the moon stone in Harvest Moon Magical melody in the Cave. (I don't believe that their are moon stones in the underground lake, but hey it is wroth a shot.)
You can't.
Harvest Moon Magical Melody; available for Game-cube and Wii.