GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The securities have a two year maturity, 3.75% rate and pay at the end of each quarter. Fees and...

GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The securities have a two year maturity, 3.75% rate and pay at the end of each quarter. Fees and commissions to Retzoff and GIFFCO's accountants came to 475,000.

Assuming that GIFFCO issued the securities on January 1, book that transaction and the first interest accrual.