Manitoba Ltd Lent $100,000 to Winnipeg Inc at an Interest

Multiple Choice

Manitoba Ltd lent $100,000 to Winnipeg Inc at an interest rate of 5%.Both the loan and all the interest are to be repaid after two years.At the end of the first year what is the entry required on Manitoba's books?

A) Dr.Interest receivable $5,000, Cr.Interest revenue $5,000
B) Dr.Interest expense $5,000, Cr.Interest payable $5,000
C) Dr.Interest revenue $5,000, Cr.Interest payable $5,000
D) There is no entry required at the end of the first year.