Maier Corporation issued $700,000 of 6%, six-year bonds for $735,902 on July 1, 2014, the day the

Question:

Maier 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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...