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On July 1, 2018 GIFFCO contracted with the investment bank X. M. Retzoff et freres to issue $40 m of short-term paper at 98.6. The

On July 1, 2018 GIFFCO contracted with the investment bank X. M. Retzoff et freres to issue $40 m of short-term paper at 98.6. The securities have a two-year maturity, carry a 4.10 % coupon rate, and pay at the end of each quarter. Fees and commissions to Retzoff and GIFFCOs accountants came to $640,000.

Required: Book the issue and the 2018 Q 3 interest accrual.

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