Landmark buys $300,000 of Schroeter Company's 8%, 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:
A. Debit Interest Receivable $8,000, credit Interest Revenue $8,000.
B. Debit Cash $8,000, credit Interest Revenue $8,000.
C. Debit Interest Receivable $12,000, credit Interest Revenue $12,000.
D. Debit Cash $12,000, credit Interest Revenue $12,000.
E. Debit Interest Revenue $8,000, credit Interest Receivable $8,000.
Answer: A
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