On January 1, 2012, Winston Company Purchased 6% Bonds for $50,000

Multiple Choice

On January 1, 2012, Winston Company purchased 6% bonds for $50,000 cash. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a:

A) debit to Interest Receivable for $1,500.
B) credit to Interest Revenue for $1,500.
C) credit to Interest Revenue for $3,000.
D) debit to Interest Receivable for $3,000.