McDonald Sales Prepared a Debenture Issue of $20 000 Dated

Multiple Choice

McDonald Sales prepared a debenture issue of $20 000 dated 1 January 2013. The debentures have a stated rate of 3% and a term of 6 years. The debenture issue was delayed, and the debentures were finally sold on 1 March 2013 at par. On 30 June 2013, the first half- yearly interest payment is made. The journal entry to record that interest payment will include which of the following line items?

A) Credit Interest payable for $100
B) Debit Interest expense for $200
C) Credit Cash for $200
D) Debit Cash for $300