On January 1 of Year 1, Mellie Company issued a $25,000, 12% bond, at face value. Interest is paid annually each January 1, so the first coupon payment was made on January 1 of Year 2. Mellie uses the effective-interest method on its books. The entry related to this bond on January 1 of Year 2 would include a Credit to Cash of $3,000 Credit to Interest Expense of $3,000 no entry is necessary Debit to Interest Revenue of $3,000 Debit to Cash of $3,000 Debit to Interest Receivable of $3,000 Credit to Interest Payable of $3,000