Maier Corporation issued $700,000 of 6%, six-year bonds for $735,902

Maier Corporation issued $700,000 of 6%, six-year bonds for $735,902 on July 1, 2014, the day the bonds were dated. The market interest rate was 5%. Interest is paid semi-annually beginning December 31, 2014. Maier uses the effective interest method to amortize bond discounts and premiums. Record the issuance of the bonds and the first payment of interest.

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