David's Loan Loaned $2,000,000 to a Customer on July 1

Multiple Choice

David's Loan loaned $2,000,000 to a customer on July 1, 2016, with an interest rate of 6% per year. No interest is scheduled to be paid until the loan is due, on June 30, 2017. The customer has not paid any interest yet. What adjustment, if any, is needed by the bank on December 31, 2016?

A) An increase in cash of $60,000 and an increase in equity and interest revenue of $60,000
B) An increase in interest receivable of $60,000 and an increase in equity and interest revenue of $60,000
C) An increase in interest receivable of $120,000 and an increase in equity and interest revenue of $120,000
D) No adjustment is needed