On January 1, 2024, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $250,000 for the machine and is leasing it to Zone for $35,000 per year, an amount that will return 12% to Calloway. The present value of the lease payments is $250,000. The lease payments are due each January 1, beginning in 2024. What is the appropriate interest entry on December 31, 2024?

Multiple Choice

General JournalDebitCreditCash30,000 Interest revenue 30,000General JournalDebitCreditCash25,800 Interest receivable 25,800General JournalDebitCreditInterest receivable25,800 Interest revenue 25,800General JournalDebitCreditInterest receivable30,000 Interest revenue 30,000