On January 1, 2017, Centre Company Purchases $170,000, 7% Bonds

On January 1, 2017, Centre Company purchases $170,000, 7% bonds at a price of 88 and a maturity date of January 1, 2027. Centre Company intends to hold the bonds until the maturity date. Interest is paid semiannually, on January 1 and July 1. Centre Company has a calendar year end. The journal entry on January 1, 2018 is:

A) debit Cash $11,900 and credit Interest Revenue $11,900.
B) debit Cash $11,900 and credit Interest Receivable $11,900.
C) debit Cash $5950 and credit Interest Revenue $5950.
D) debit Cash $5950 and credit Interest Receivable $5950.