Samuel's, Inc. sold

$25,000

of

8%

bonds to an individual on April 1 at par value. The bonds pay interest on June 30 and December 31 each year. What are the proper entries for the sale of the bonds and the June 30 payment of the interest for these bonds? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)

A.

	Account	Debit	Credit
April 1	Cash	1,500
	Interest Payable		1,000
	Bonds Payable		500

	Account	Debit	Credit
June 30	Interest Expense	1,000
	Interest Payable		1,000

B.

	Account	Debit	Credit
April 1	Cash	25,000
	Bonds Payable		25,000

	Account	Debit	Credit
June 30	Interest Expense	1,000
	Cash		1,000

C.

	Account	Debit	Credit
April 1	Cash	25,500
	Interest Payable		500
	Bonds Payable		25,000

	Account	Debit	Credit
June 30	Interest Expense	500
	Interest Payable	500
	Cash		1,000

D.

	Account	Debit	Credit
April 1	Cash	25,667
	Interest Payable		667
	Bonds Payable		25,000

	Account	Debit	Credit
June 30	Interest Payable	667
	Interest Expense	333
	Cash		1,000