On January 1, 2012, Plymouth Company Purchases $100,000, 6% Bonds

Multiple Choice

On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The entry for the receipt of interest on January 1, 2012 would include a:

A) credit to Interest Revenue $6,000.
B) credit to Interest Receivable $6,000.
C) credit to Interest Revenue $3,000.
D) credit to Interest Receivable $3,000.