On January 1, Year 1, Eureka Company issued $100,000 of five-year, 7% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of interest payable related to these bonds that will be reported on the balance sheet at December 31, Year 1? (Hint: Consider the interest that might be owed to bondholders at December 31, Year 1.)

$107,000

$99,300

$7,000

$100,000