The 5,000, $1,000 face value bonds issued by Cage Company on March 1, 20X1 pay interest at a 9% annual rate semiannually on April 1 and October 1.

Which of the following is part of the adjusting entry to be made on December 31, 20X1?

Group of answer choices

No adjusting entry needed

A CREDIT to Interest Payable for $225,000

A DEBIT to Prepaid Interest Expense for $225,000

A CREDIT to Cash for $225,000

A DEBIT to Prepaid Interest Expense for $112,500

A CREDIT to Interest Payable for $112,500

A CREDIT to Cash for $112,500