Question: Pima Company acquires 50, 10 percent, five years, $1,000 Community bonds on January 1, 2008 for 51,250 dollars. This includes a brokerage commission of $1,250. Suppose Community pays interest on January 1 & July 1, & the July 1 entry was done correctly. The journal entry at December 31, 2008 would include a credit to:
[A] Accrued Expense for $5,000.
[B] Interest Revenue for $2,500.
[C] Interest Receivable for $2,500.
[D] Interest Revenue for $5,000.