McDonald Sales Prepared a Bond Issue of $20,000 Dated January

Multiple Choice

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

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