Landmark buys $390,000 of Schroeter Company's 10%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually on March 1 and September 1. The journal entry Landmark should record to accrue interest earned at year-end December 31 is (Do not round your intermediate calculations):
A. Debit Interest Receivable $19,500, credit Interest Revenue $19,500.
B. Debit Cash $19,500, credit Interest Revenue $19,500.
C. Debit Cash $13,000, credit Interest Revenue $13,000.
D. Debit Interest Revenue $13,000, credit Interest Receivable $13,000.
E. Debit Interest Receivable $13,000, credit Interest Revenue $13,000.
Answer: E
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