Samuel's, Inc. sold $15,000 of 6% bonds to an individual on April 1 at par value. The bonds pay interest on June 30 and December 31 each year. What are the proper entries for the sale of the bonds and the June 30 payment of the interest for these bonds?
A) Account Debit Credit
April 1
Cash
15,225
Interest Payable
225
Bonds Payable
15,000
Account Debit Credit
June 30
Interest Expense
225
Interest Payable
225
Cash
450
B) Account Debit Credit
April 1
Cash
15,000
Bonds Payable
15,000
Account Debit Credit
June 30
Interest Expense
450
Cash
450
C) Account Debit Credit
April 1
Cash
15,450
Interest Payable
450
Bonds Payable
15,000
Account Debit Credit
June 30
Interest Expense
450
Interest Payable
450
D) Account Debit Credit
April 1
Cash
15,300
Interest Payable
300
Bonds Payable
15,000
Account Debit Credit
June 30
Interest Payable
300
Interest Expense
150
Cash
450
Answer: A
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