Leotis Asset Management invested in the bonds of DEF Co. on 1/1/16. Leotis intends to hold the bonds until maturity. These 5-year bonds had a face value of $900,000, pay 5% interest on 6/30 and 12/31 of each year, and were issued when the market rate of interest was 6%, resulting in a cost of $861,614. Which of the following is the correct journal entry to record the receipt of the interest payment on 6/30/16?
A)

\begin{array} { | l | r | r | } \hline \text { Interest Receivable } & 22,500 \\\hline \text { Held-to-Maturity Debt Investment - DEF Bonds } & & 16,742 \\\hline \text { Interest Revenue } & & 5,758 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Cash } & 22,500 \\\hline \text { Held-to-Maturity Debt Investment - DEF Bonds } & 3,348 & \\\hline \text { Interest Revenue } & & 25,848 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Interest Receivable } & 45,000 \\\hline \text { Held-to-Maturity Debt Investment - DEF Bonds } & & 4,819 \\\hline \text { Interest Revenue } & & 40,181 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Cash } & 45,000 & \\\hline \text { Held-to-Maturity Debt Investment - DEF Bonds } & 6,697 & \\\hline \text { Interest Revenue } & & 51,697 \\\hline\end{array}

If a Note's Stated Interest Rate Is Equal to the Prevailing

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