On January 1, 2023, Duffy Company issued, at face value, $1000, 7% bonds due in ten years. Interest is payable semiannually January 1 and July 1. Assume Duffy Company issues financial statements once per year on December 31.

On July 1, 2023, which journal entry should Duffy make?

a.

Debit Interest Expense $35.00; Credit Cash $35.00

b.

Debit Interest Expense $70.00; Credit Cash $70.00

c.

Debit Interest Expense $70.00; Credit Interest Payable $70.00

d.

Debit Interest Expense $35.00; Credit Interest Payable $35.00