Landmark buys $300,000 of SRW Companys 7%, 5-year bonds payable, at par value on July 1. Interest payments are made semiannually on December 31 and June 30. The journal entry Landmark should make to record interest earned at year-end December 31 is:

• Debit Interest Receivable $10,500, credit Interest Revenue $10,500.

• Debit Cash $7,000, credit Interest Revenue $7,000.

• Debit Interest Revenue $10,500, credit Cash $10,500.

• Debit Cash $10,500, credit Interest Revenue $10,500.

• Debit Cash $21,000, credit Interest Revenue $21,000.